Composite Depreciation

Home » CMA Glossary Term » Financial Statements and Reporting » Composite Depreciation

Composite Depreciation is a method used to depreciate a group of related assets collectively, rather than individually. This approach simplifies accounting by applying a single depreciation rate to the entire asset group, based on the average useful life of the assets. It is particularly useful for assets that are similar in nature and usage. Composite depreciation streamlines financial reporting and asset management.

CMA Prep Course

CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.