CHAPTER 5EQUIPMENT AND OTHER THINGS THAT WILL BE AROUND FOR YEARS
DEPRECIATION: HOW MUCH DOES IT COST TO HAVE THE STUFF AROUND?
Some things you buy and they are gone, used up, tomorrow. Around my house it’s chocolate chip cookies. At the office it’s ballpoint pens. Some things last forever (almost). We still have a bottle of cod liver oil my grandmother purchased in 1937.
However, accountants don’t talk in terms of chocolate chip cookies and cod liver oil. They talk in terms of benefit. In other words, does what you bought benefit you, or your company, in this year only, or is the benefit spread over several years?
Rosie Rouse conducted a survey and found that many of her customers were unhappy with the fact that the sheds she sold as Spouse ...