In _____________ method, it is assumed that a property will lose its value by a constant percentage of its value and the beginning of every year.(a) Sinking fund(b) Constant percentage(c) Straight line(d) Operating CostI have been asked this question during an online interview.Question is from Operating Cost of Equipment topic in chapter Construction Equipments of Construction & Building Materials

In _____________ method, it is assumed that a property will lose its v

1.	In _____________ method, it is assumed that a property will lose its value by a constant percentage of its value and the beginning of every year.(a) Sinking fund(b) Constant percentage(c) Straight line(d) Operating CostI have been asked this question during an online interview.Question is from Operating Cost of Equipment topic in chapter Construction Equipments of Construction & Building Materials
Answer» Right choice is (b) CONSTANT PERCENTAGE Explanation: according to constant percentage method, when the ratio S/P is very small, the depreciation for the FIRST year will be considerable, where S is Salvage or scrap value and P is the ORIGINAL cost.

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