... on some other jobs. There is no doubt that ignoring the amount paid in calculating material cost because it is useless to look back to past. Based on the opportunity cost concept, depreciation should be considered in resulting from asset value, which is estimated obtainable present value of net receipt from the asset, is sometimes affected by its usage. Depreciation through use, which discusses depreciation as part of opportunity cost, must included in costs calculation because if that output were not produced, certain other receipt would increase. Ignoring depreciation through use, however, the effect on future receipt of change of output will be neglected. Depreciation arises a problem from the fall in asset value, so whether to use machine or not, the present value of future payments and receipts by multiplied with discounting rate should be calculated. But the actual choice will to some subjective extent of the attitude to ...

See this essay or coursework document in full right now