Sum-of-the-Digits Method

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Definitions
Depreciation
Depreciation Tangible Fixed Assets Accounting Period Useful Economic Life Straight-Line Method Diminishing-Balance Method Sum-of-the-Digits Method Production-Unit Method Revaluation Method Currency Depreciation
Depreciation is a measure of the decrease in value of tangible fixed assets during a given accounting period, reflecting wear and tear, obsolescence, or reduction in useful economic life. It can be relevant for both accounting and currency valuation contexts.
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Definitions
Sum-of-the-Digits Method
Sum-of-the-Digits Method Depreciation Accounting Period Fixed Assets Residual Value Depreciation Methods Sum of the Years Digits Method Asset Valuation
The sum-of-the-digits method is a technique for calculating the depreciation of a fixed asset, where the majority of the depreciation is recognized in the early years of the asset's life.
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