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    ivory5130's Avatar
    ivory5130 Posts: 55, Reputation: 1
    Junior Member
    		  
    #1

    Jun 28, 2007, 04:47 PM
    Depreciation methods
    If I switched my method from assuming all assets are in use in the first day of the month nearest to the purchase date to all asset additions are considered to be in use on the first day of the following month, how would this affect the project margin of the business? I am now ready to pull my hair out. I have been reading the chapter over and over again and I can't figure it out.:confused:
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jun 29, 2007, 12:44 AM
    It could lower your expenses in your first year of operations….

    Therefore, increasing your profit margin in its first year.

    I buy something on May 27…normally that would go to June 1, so no change.

    If I buy on May 2…normally to May 1, now delayed until June 1..

    So I am delaying some purchases until June.
    ivory5130's Avatar
    ivory5130 Posts: 55, Reputation: 1
    Junior Member
    		  
    #3

    Jun 30, 2007, 04:31 PM
    Okay I get it now.
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