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What does the Diminishing Value and Prime cost method mean?

April 26, 2017COST diminishing mean method Prime value

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What does the Diminishing Value and Prime cost method mean?

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Both terms refer to the way in which Plant and Equipment is depreciated in accordance with the ATO guidelines. The Diminishing Value method accelerates the allowances in the earlier years, where as the Prime Cost method evenly spreads the allowances out.