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Essay / Research Paper Abstract
This 7 page paper considers how an asset for a business needs to be chosen. The example used is that of a van for a florist. The paper then considers how the asset should be acquired, either with the use of leasing or outright purchase. The paper then looks at how a purchase can be written off with different forms of deprecation, showing examples of straight line depreciation, unit production depreciation and the double declining method. The impact these will have on the net profit is also considered. The bibliography cites 3 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEdepriciate.rtf
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Unformatted sample text from the term paper:
make deliveries. The first consideration had to be purpose for which the van is to be used and to assess the way in which the van ca meet these needs.
If we look at the uses there will be the need to hold a range of different floral products, bequests as well as
arrangements. This means that any van will need to have shelf space where there can be the secure transportation of the products. An unmodified van with only floor space may
be to limiting causing several journeys to be made. Therefore we need to locate a van where the flower products can be transported safety and in numbers., The next stage
is to consider the number of products to be carried in a single journey. If the company has only limited local journeys a smaller van will suffice, but if there
are larger territories covered then a larger van will be needed. The types of arrangements may also need consideration. For example, a few funeral reefs may take up the same
space and up to ten bouquets. The van needs to accommodate these uses as well as the everyday uses. The access to
the van may also need consideration. The number of deliveries may be facilitated with a side entrance to the van, allowing the delivery driver enter and retrieve deliveries from the
pavement. Issues such as the size of the parking lot and the loading area available will also need to be considered with the choice regarding the purchase of the van.
From this we will assume that a transit type van with side and back doors and the ability to have shelves fitted
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