Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Abstract

In the industrial economic analysis very few studies are available, dealing as to when a capital asset has to be retired and how a depreciation policy is to be formulated. The retirement of a capital asset depends upon several factors. However, two important factors may be emphasised which to a great extent determine the retirement of a capital asset and depreciation allocations. They are:

1. The Technical life of the asset

2. The Economic life of the asset.

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