Which of the following is not a component of depreciation cost ?
Correct answer: D. Repairs and maintenance cost
- A. Loss due to accident/breakdown in the machinery
- B. Loss due to obsolescence of the equipment
- C. Loss due to decrease in the demand of product
- D. Repairs and maintenance cost
Explanation
Depreciation represents loss in an asset's value from causes such as obsolescence, wear, and accidental damage. Repairs and maintenance are operating expenses incurred to keep equipment functional, not depreciation itself.
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