Business, Management and Accounting
3 years ago

Choosing the Right Depreciation Method Boosts Company Profits Dramatically

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International Journal of Research in Vocational Studies (IJRVOCAS)
Comparison of Fixed Assets Depreciation Method and Direction Influence on Company Profits in PT Akasha Wira International Tbk
Miftahul Anisa, Noor Amelia, Rina Pebriana

Paper Summary

The study compared different ways of calculating depreciation for fixed assets in a company. They looked at how using the straight-line method versus the double-declining balance method affected the company's profits. By analyzing financial reports from 2014-2018, they found that the straight-line method led to higher operating income compared to the double-declining balance method.

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