Microsoft Office Tutorials and References
In Depth Information
DDB
A
The function built
with cell referencing
Figure 6.13
DB returns the asset
depreciation for a
period using the
fixeddeclining balance
method.
DDB DDB returns the asset depreciation for a period using the double-declining balance method, or
another method specified by you.
=DDB(cost,salvage,life,period,factor)
The double-declining method is highest in the first period and decreases in successive periods.
If you purchase a machine that cost \$5,000 and has a lifetime of 4 years, the salvage value of
the machine is \$1,250. Figure 6.14 shows the depreciation over 4 years using the DDB function
(double-declining method). The double-declining balance method calculates depreciation at an
accelerated rate. The depreciation is highest in the first period and decreases in successive
periods thereafter.
Assetâ€™s initial cost.
COST
The value at the end of the depreciation.
SALVAGE
The number of periods over which to depreciate the asset.
LIFE
The period over which the depreciation is calculated. The period must
use the same number as Life .
PERIOD
Is the rate in which the balance declines. If Factor is omitted, it is
assumed to be 2, the double-declining method as explained previously.
FACTOR
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