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Question
question 48 (1 point)
knowing depreciation helps fm primarily to:
plan replacements and understand book value for capital planning.
increase electricity bills intentionally.
reduce preventive maintenance compliance.
eliminate asset inventories.
Depreciation is used in accounting to allocate the cost of an asset over its useful life. For facility management (FM), it helps in planning when assets need replacement (based on their depreciated value over time) and understanding the book value (which is the asset's cost minus accumulated depreciation) for capital planning purposes. Increasing electricity bills intentionally is not a valid or logical outcome related to depreciation knowledge. Reducing preventive maintenance compliance is also not a positive or relevant result. Eliminating asset inventories is not a function of knowing depreciation.
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Plan replacements and understand book value for capital planning.