Accounting · Depreciation
Why is the Written Down Value (WDV) method considered highly suitable for assets whose repair costs increase as they age?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1It ensures that the total operational charge (Depreciation + Repairs) remains relatively constant over the asset's life.✓
- 2It consistently yields a lower net profit figure in the initial years.
- 3It depreciates the asset to zero much faster than the Straight-Line Method.
- 4It is mandatory under the Companies Act for all fixed assets.
Correct answer
It ensures that the total operational charge (Depreciation + Repairs) remains relatively constant over the asset's life.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Depreciation MCQs →Want more practice questions on Depreciation?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Depreciation