In _____________ method, it is assumed that a property loses its value by the same amount every year.(a) Sinking fund(b) Operating Cost(c) Constant percentage(d) Straight lineThis question was posed to me in an international level competition.I would like to ask this question from Operating Cost of Equipment topic in chapter Construction Equipments of Construction & Building Materials

In _____________ method, it is assumed that a property loses its value

1.	In _____________ method, it is assumed that a property loses its value by the same amount every year.(a) Sinking fund(b) Operating Cost(c) Constant percentage(d) Straight lineThis question was posed to me in an international level competition.I would like to ask this question from Operating Cost of Equipment topic in chapter Construction Equipments of Construction & Building Materials
Answer» Right answer is (d) Straight LINE To explain I would say: Straight line method is employed to work out the cost depreciation effectively. According to this method, the total depreciation is the DIFFERENCE between ORIGINAL cost and Salvage or scrap value.

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