What Is a Depreciation Rate?
The depreciation rate of fixed assets refers to the ratio of the depreciation of fixed assets to the original value of fixed assets within a certain period. According to the calculation method, it can be divided into individual depreciation rate, classified depreciation rate, and comprehensive depreciation rate. According to the period calculation, it can be divided into annual depreciation rate and monthly depreciation rate. The individual depreciation rate is the ratio of the depreciation amount calculated based on the original value of a fixed asset to the estimated useful life of the fixed asset to the original value of the fixed asset. The classification depreciation rate is the ratio of the average depreciation amount calculated by classification to the original value of this type of fixed assets according to the type of fixed assets. The comprehensive depreciation rate is the ratio of the average depreciation amount calculated based on all fixed assets to the original value of all fixed assets. [1]
Depreciation rate of fixed assets
Right!
The depreciation rate of fixed assets refers to the ratio of the depreciation of fixed assets to the original value of fixed assets within a certain period. According to the calculation method, it can be divided into individual depreciation rate, classified depreciation rate, and comprehensive depreciation rate. According to the period calculation, it can be divided into annual depreciation rate and monthly depreciation rate. The individual depreciation rate is the ratio of the depreciation amount calculated based on the original value of a fixed asset to the estimated useful life of the fixed asset to the original value of the fixed asset. The classification depreciation rate is the ratio of the average depreciation amount calculated by classification to the original value of this type of fixed assets according to the type of fixed assets. The comprehensive depreciation rate is the ratio of the average depreciation amount calculated based on all fixed assets to the original value of all fixed assets. [1]
Fixed asset depreciation rate refers to the depreciation of fixed assets over a certain period of time.
Classification of depreciation rate of fixed assets:
The fixed asset depreciation rate is divided into individual depreciation rate, classified depreciation rate and comprehensive depreciation rate.
The individual depreciation rate refers to the depreciation rate calculated based on the original price of a fixed asset and the estimated useful life. Calculated as follows:
Annual depreciation rate of a fixed asset = | Annual depreciation of this fixed asset | X 100% |
| Original price of the fixed asset |
Or =
| Original price of the fixed asset | X 100% |
| Expected useful life of the fixed asset × original price of the fixed asset |
Or =
| 1 | X 100% |
| Expected useful life of the fixed asset |
Monthly depreciation rate of a fixed asset = annual depreciation rate of this fixed asset ÷ 12
Monthly depreciation of a fixed asset = original price of the fixed asset × monthly depreciation rate
[Example] The original price of a fixed asset is 6,000 yuan, which is expected to be used for 10 years. The depreciation rate and depreciation amount of the fixed asset are calculated as follows:
Annual depreciation rate of fixed assets = 1/10 × 100% = 10%
Monthly depreciation rate of fixed assets = 10% ÷ 12 = 0.8333%
Monthly depreciation of fixed assets = 6,000 × 0.8333% = 50 yuan
The depreciation amount calculated according to the average service life method is equal in each year or month of use, and the accumulated depreciation amount has a continuous upward trend. Therefore, this method is also called the "linear method", which is a fixed calculation A method commonly used when depreciating assets. However, for some fixed assets, in order to correctly calculate production expenditures and make the cost burden more reasonable, depreciation can also be used in accordance with the ratio of the actual working time of the fixed assets to the completed workload. For example, some large-scale machinery and equipment that are valuable and are not often used can be depreciated according to their working hours; transportation equipment such as automobiles can be depreciated according to their mileage.
