Composite Depreciation Definition

Below please find a definition of “Composite Depreciation”

Financial Analysis Training & Glossary TermsComposite Depreciation: The practice of applying one depreciation rate to the entire range of assets is termed as composite depreciation. A very common such instance can be seen in the real estate industry. The foundation of the building may last for 50 years, but things like plumbing and electricity might last for only 20 years. Yet the same depreciation rate is applied for the foundation, plumbing and electricity.

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