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TOPIC: Question Depreciation

Depreciation 3 years 10 months ago #4032

  • Leslie Craw
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Are the depreciation formulas tested on the PMP exam? If so, is there any information in the PMBOK Guide? I'm not finding it. Thanks!
Leslie Craw, PMP
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Last Edit: by Leslie Craw.

Depreciation 3 years 10 months ago #4033

  • BIJIT SINGHA
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I did not refer PMBOK for formula. I used formula guide by Cornelius.

Depreciation 3 years 10 months ago #4034

  • Leslie Craw
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Do you know if it's tested on the exam?
Leslie Craw, PMP
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Depreciation 3 years 10 months ago #4037

  • Heather Nearhoof
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I'm interested in this question, too. Rita's book says you do not need to know depreciation formulas for the exam, just substantively understand the different types of depreciation.

Depreciation 3 years 10 months ago #4044

  • Cornelius Fichtner
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All,

I conferred with Kevin Reilly and he has the following advice:

Based on my personal experience in PMP Exam Prep, as well as my conversations with students who have taken the exam, I have never run across the need for the exam taker to “calculate” depreciation. Having said that, I do believe it is important for the exam taker to understand the difference between Standard Depreciation (AKA Straight Line Depreciation) method and Accelerated Depreciation methods, such as Sum of the Year’s Digits and Double-Declining Balance.

So my recommendation would be that you absolutely need to know the general concepts, you should understand how the formula works and maybe even invest an hour or two in answering a few sample questions and applying the formulas. But then move on to those formulas that you will for sure encounter on the exam. And that's Earned Value.
The following user(s) said Thank You: Leslie Craw, Swati Kumar
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC
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