Food-Processing-Plant-Design-layout

Food Processing Plant Design & layout
asset during its accounting life. Income tax during a year is chargeable only
on the net
profit obtained by deducting the amount of depreciation from gross profits.
16. Book Value of an Asset: At any time during the accounting life of an
asset, its book value is equal to its cost price minus the total amount of depreciation
charged on it by that time.
17. Salvage Value: It is the actual or estimated value of an existing asset at which it can
be sold now or at a certain date in the future.
18. Retirement: It is the disposal of an existing asset through sales or abandonment as
scrap.
19. Replacement: It means acquiring a new asset through purchase or lease to
perform the same or extended service which had so far been performed by another
asset which has been retired.
20. Defender and Challenger: When an economic
analysis is made to decide whether or not to replace an existing asset with another, t
he
existing asset is referred to as the Defender and the proposed replacement as the Cha
llenger.
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