COST BEHAVIOR

Cost Behavior

Cost Behavior

Straight-line depreciation on desks in the office of an attorney

The simplest and most commonly used depreciation method, straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the company (called "useful life" in accounting jargon).

Step Cost

Cost = $ 500

Salvage value = $ 110

Number of years = 5

Straight line depreciation on desks in the office of an attorney

= cost - salvage value

Number of years = $ 500 - $ 110

5

= $ 390

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