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Difference between Depreciation & Depletion?

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Question added by Vijayabharathi Kalyanasundaram (ACMA - INDIA) , Finance Analyst , shell
Date Posted: 2015/06/30
Eric OSEI
by Eric OSEI , teacher , bankoman secondary school

Depreciation is the part of the cost of the fixed asset consumed during it's period of use by the firms whilst Depletion is other asset that are of wasting character, perhaps due to the extraction of raw materials from them. These raw materials are then either used by the firm to make something else or are sold in their raw state to other firms.

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