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THIS WEEK'S PROBLEM.

12th November 1929, Page 203
12th November 1929
Page 203
Page 203, 12th November 1929 — THIS WEEK'S PROBLEM.
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It has always been our view that the best way to calculate depreciation as an item in the operating cost of a commercial-motor vehicle is to assume a life in miles and depreciate evenly over that mileage. The depreciation for the first year is not so heavy in comparison with other years, as in the case of touring cars, because, in commercial vehicles, the troublesome question of the year of origin has not arisen. If, however, you wish to make some special allowance for the fact that your vehicles do such a low mileage, you may find it more convenient to group together depreciation, interest on first'cost and maintenance in such a manner that the allocation of annual sums for depreciation would diminish the effect of interest on first cost. Furthermore, if the depreciation be on a falling scale, it would offset the rising maintenance.