1, service life method
Refers to a method of sharing the value of fixed assets equally according to the expected service life. If this method takes time as the abscissa and amount as the ordinate, then the accumulated depreciation amount appears as a rising straight line on the diagram, so it is called "straight line method".
2. Workload method
Depreciation expense refers to a method to extract the depreciation of fixed assets according to the specified total workload (total working hours, total workbench shifts, total mileage, etc.). ).
This method is suitable for the depreciation calculation of some special production equipment and transportation equipment with great value, but not often used or with great production changes and uneven wear. According to the use and characteristics of equipment, depreciation can be calculated by different methods such as working hours, workbench shifts or mileage.
Improved accelerated cost recovery system
(1) Digital sum method of service life: also known as the total service life method or the service life ratio method, it refers to multiplying the accumulated depreciation amount by the ratio of the remaining service life (including the current year) to the total service life as the depreciation expense for a certain year.
(2) Double declining balance method: refers to the depreciation of fixed assets at the beginning of each year and the double straight-line depreciation rate without considering the residual value.
Extended data:
Because depreciation expense accounts for a small proportion in the product cost, it is generally regarded as an indirect expense and is included in the relevant comprehensive expenses according to its economic use and place of use.
For example, the depreciation expense of the fixed assets used in the basic production workshop should be recorded in the depreciation expense item in the manufacturing expense subsidiary ledger; Depreciation expenses of fixed assets used in auxiliary production workshops are recorded in the subsidiary ledger of auxiliary production expenses;
The depreciation expense of fixed assets used by the administrative department of an enterprise shall be charged in the depreciation expense item in the subsidiary ledger of management expenses; Depreciation expenses of fixed assets used by the sales department should be recorded in the relevant items of the subsidiary ledger of product sales expenses.
If an enterprise produces a single product, all the expenses incurred shall be borne by the product, and cost items may be set according to the economic content of the expenses. In this case, all expenses are direct expenses, so depreciation expenses can be directly included in the "depreciation expense" cost item in the "production cost" sub-ledger.
For modern technology-intensive enterprises, depreciation expenses will account for an increasing proportion of product costs. In this case, depreciation expense can also be listed as a separate cost item. If an enterprise or workshop only produces one product,
Depreciation expense can be directly included in the "depreciation expense" item of the production cost subsidiary ledger. If an enterprise or workshop produces a variety of products, depreciation expenses can be allocated among various products according to the working hours of the machine, and then recorded in the production cost subsidiary ledger.
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