Economics, Econometrics and Finance
8 years ago

Accelerated depreciation key to economic performance and capital investment renewal.

Voprosy Ekonomiki
On the Economic Nature of Depreciation
Alexei G. Orlov

Paper Summary

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Depreciation is a crucial part of economic performance, not just a transfer of value from fixed assets. Profit and depreciation work together to determine economic success. Capital investment and accelerated depreciation play key roles in this process. Depreciation is not just a direct cost, but is factored into the price of products to ensure that fixed assets can be renewed.