The linear method, the method of av

The linear method, the method of average life, is the simplest and most commonly used method. It assumes that depreciation is due to the passage of time rather than the relationship of use, and that the determinant of the decline in service potential is the obsolescence and damage caused by the passage of time rather than the physical wear and tear caused by use. It is thus assumed that the service potential of the asset is the same across accounting periods in terms of the total cost of services used, regardless of the degree of actual use. This method is based on the original price of the fixed assets to the expected net salvage value divided by the estimated useful life, honesty, finding the annual depreciation expense in the use fixed number of year, the value of fixed assets transferred to the product cost are equal, in a straight line depreciation of the accumulative amount rising trend, the advantages of this method is simple and easy operation, but ignore the "benefits when, when to pay" matching principle, especially in a device to use at the initial and late stages with its peak for the use of the same depreciation expense, obviously it is not reasonable.