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TM - Assignment 9
TM - Assignment 9
WHAT is to be made
HOW manufacturing takes place
WHICH kind of resources are required to be used
8. Explain depreciation.
Whenever, any machine or equipment performs useful work, its wear and tear is bound to
occur. This can be minimised up to some extent by proper care and maintenance but can’t
be totally eliminated. Its efficiency also reduces with the lapse of time and at one time it
becomes uneconomical to be used further and needs replacements by another new unit.
The amount required for such replacements is to be kept aside from the recoveries made
from the existing equipment.