List out the factors that determine the useful life of asset?
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
Factors that determine the useful life of asset
- Pre-determined by legal or contractual limits, e.g. in case of leasehold asset, the useful life is the period of lease.
- The number of shifts for which asset is to be used.
- Repair and maintenance policy of the business organisation.
- Technological obsolescence.
- Innovation/improvement in production method.
- Legal or other restrictions.
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