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aimenathan_discussionpost6 - possible but at the same time...

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Subject: Discussion post 6 Posted by Nathan Aime Tue Aug 10 22:10:40 2010. Message: As the book states, "Under the units-of-activity method, useful life is expressed in terms of the total units of production or use expected from the asset, rather than as a time period. This method can be used for such assets as delivery equipment (miles driven)." Compared to the straight-line or declining- balance methods, I would choose the units-of-activity method for depreciation of the vans for my business. Posted by Nathan Aime Tue Aug 10 22:25:20 2010. Message: I agree that financially it is better for the business to get as much use out of the vehicles as
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Unformatted text preview: possible, but at the same time the business has to consider how dependable the vehicle is and if it is worth it to risk the vehicle breaking down and not getting your product delivered on time, which in the end, could have an impact on the proficiency of the business. Posted by Nathan Aime Tue Aug 10 22:33:24 2010. Message: I wouldn't care about the resale value of the vans either. I would intend on using the vans for the longest amount of time possible until it is either not cost effective to pay for repairs or the liability of risking the vans breaking down on me and losing reliability....
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