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Why is the reducing balance method of calculating depreciation used in preference to straight line method?

April 26, 2017Balance calculating depreciation line method reducing straight Used

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Why is the reducing balance method of calculating depreciation used in preference to straight line method?

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Marty Simpson Posted

Depreciation isn’t a consistent line. For example, a new 2012 car loses value as soon as you take it off the car lot, but the age and mileage will depreciate it’s value at a varied rate, depending on demand as well.

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&nbsp Visit www.TeachExcel.com for more, including Excel Consulting, Macros, and Tutorials. Calculate depreciation in Excel using the Double Declining Balance Method and function in Excel. This tutorial explains exactly how to use the DDB() function in Excel and also why you should not use this function in Excel. The Double Declining Balance Method of calculating depreciation is not necessarily a bad method to use, but this function in Excel will not fully depreciate an asset when the salvage …