Original Scientific Paper, Volume 10, Number 1, Year 2012, No 220, pp 43 - 48

Published: Apr 25, 2017

DOI: 10.5937/jaes10-1664

METHODS OF CALCULATING DEPRECIATION EXPENSES OF CONSTRUCTION MACHINERY

Marina Rakocevic 1
Marina Rakocevic
Affiliations
  University of Podgorica, Faculty of Civil Engineering, Podgorica, Montenegro
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∙ Predrag Petronijevic 2
Predrag Petronijevic
Affiliations
  University of Belgrade, Faculty of Civil Engineering, Belgrade, Serbia
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∙ Nenad Ivanisevic 2
Nenad Ivanisevic
Affiliations
  University of Belgrade, Faculty of Civil Engineering, Belgrade, Serbia
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∙ Dragan Arizanovic 2
Dragan Arizanovic
Affiliations
  University of Belgrade, Faculty of Civil Engineering, Belgrade, Serbia
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Abstract

Depreciation expenses represent a significant part of total expenses of construction machinery. Precise calculation of depreciation expenses is often difficult or impossible. Straight line method of depreciation, which is commonly used in the calculation of ownership costs of construction machinery, does not give accurate results. This paper analyzes methods of depreciation expenses calculation, as well as their impact on the overall expanses of construction machinery and the impact on the cost per unit of material processed.

Keywords

depreciation construction equipment expenses

References

P. Petronijevic, “Optimizacija izbora gradjevinskih masina”, PhD thesis, Belgrade, 2011..

Gunnar L. Christine M. Anderson, Michael Vorster, “Statistical Considerations for Predicting Residual Value of Heavy Equipment”, Journal of Construction Engineering and Management, ASCE, July 2006 page 723 – 732

USACE, “Construction Equipment Owner¬ship and Operating Expense  Schedule”, 2007.