Allied & ICAR Exam Bank • ALLIED_2947 MCQ • 1 Mark

Section 2: Farm Machinery

Farm Machinery

Subtopic: Cost analysis of implements and tractors

Question Statement:

In the sum-of-years-digits depreciation method, the depreciation charge is:

Options:

  • (A) Higher in early years and decreases progressively over machine lifespan
  • (B) Constant every year
  • (C) Zero in early years
  • (D) Lowest in first year

Answer Key:

A

Step-by-Step Solution & Explanation

Sum-of-years digits is an accelerated depreciation schedule matching higher initial depreciation of new machinery.
← Previous (ALLIED_2946) Next (ALLIED_2948) →

Practice In Authentic CBT Exam Interface

Test your skills under authentic timed conditions with live scoring and AIR percentile ranking.

Launch CBT Mock Test