Causes of Depreciation

The main causes of depreciation may be divided into two categories namely: Internal Cause and External Causes. Internal and external causes affect depreciation. Wear and tear is one internal cause. Using an item and putting wear on that item will make it reduce in value. The reduction of an asset will also cause reduction internally. External factors that affect decline are when the item becomes outdated and replaced by a newer product.

Causes of Depreciation

Causes of Depreciation: Learning Objectives: What are the causes of definition? The main causes of depreciation may be divided into two categories, namely: Internal Cause and External Causes Internal Causes: Depreciation which occurs for certain inherent normal causes, is known as internal depreciation. The