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All of the following are basic types of

depreciation, EXCEPT:
a. Physical deterioration
b. Functional obsolescence
c. External obsolescence
d. Component depreciation

1 Answer

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Final answer:

The basic types of depreciation exclude (d) component depreciation; they include physical deterioration, functional obsolescence, and external obsolescence, with the latter two often influenced by trends in consumer behavior and manufacturing practices, such as planned obsolescence.

Step-by-step explanation:

The basic types of depreciation are physical deterioration, functional obsolescence, and external obsolescence. Component depreciation, as listed in the question, is not considered a basic type of depreciation. Physical deterioration refers to the wear and tear that occurs over time simply due to the usage and exposure of an asset. Functional obsolescence happens when an asset becomes less useful or desirable because of an outdated design or technology, which doesn't meet current standards or needs. External obsolescence is when factors outside of the asset cause it to diminish in value, such as changes in the market or legal environment.

In the context of manufacturing and technology, this question touches on the current shift in consumer trends towards sustainability and repairability, as opposed to earlier trends of planned obsolescence, where goods like nylon stockings were designed for quick replacement. A move towards a more sustainable economy would emphasize the value of craftsmanship, community resources, and high-quality goods that are designed to last, be repaired, or upgraded, rather than disposed of. This also ties into the concept of reducing environmental costs associated with manufacturing new products and disposing of old ones, focusing more on repairing defective components instead.

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