A change in the amount of annual depreciation recorded does not change the facts about the decline in economic usefulness It merely changes reported figures Depreciation in accounting consists of allocating the cost of an asset over its useful life in a systematic and rational manner Abnormal obsolescence as suggested by the plant manager would justify more rapid depreciation but increasing the depreciation charge would not necessarily result in funds for replacement

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Answer The change in the amount of annual depreciation recorded does not change the facts about the decline in economic usefulness but it does affect ... View the full answer