Welcome, Guest
Do you need customer support or technical assistance? Click here to submit a support ticket...

TOPIC: Depreciation

Depreciation 2 years 9 months ago #4032

  • Leslie Craw
  • Leslie Craw's Avatar
  • Offline
  • Fresh Boarder
  • Posts: 5
  • Karma: 0
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
Community Moderator
Last Edit: 2 years 9 months ago by Leslie Craw.

Depreciation 2 years 9 months ago #4033

  • BIJIT SINGHA
  • BIJIT SINGHA's Avatar
  • Offline
  • Fresh Boarder
  • Posts: 10
  • Thank you received: 3
  • Karma: 0
I did not refer PMBOK for formula. I used formula guide by Cornelius.

Depreciation 2 years 9 months ago #4034

  • Leslie Craw
  • Leslie Craw's Avatar
  • Offline
  • Fresh Boarder
  • Posts: 5
  • Karma: 0
Do you know if it's tested on the exam?
Leslie Craw, PMP
Community Moderator

Depreciation 2 years 9 months ago #4037

  • Heather Nearhoof
  • Heather Nearhoof's Avatar
  • Offline
  • Fresh Boarder
  • Posts: 2
  • Karma: 0
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 2 years 9 months ago #4044

  • Cornelius Fichtner
  • Cornelius Fichtner's Avatar
  • Offline
  • Administrator
  • PrepCast Instructor
  • Posts: 981
  • Thank you received: 157
  • Karma: 30
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.
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC
The following user(s) said Thank You: Leslie Craw, Swati Kumar
Moderators: Yolanda Mabutas, Ahmed Amin, Scott Gillard, Michael DeCicco, Rahul Kakkar, Fernando Jr Sinlao Lim, Mary Kathrine Padua, Chris Preziotti, Lazard Toe, ITBMC, MPM, CIPM, PMP, ITIL, Christian Winter, Kevin Nason, Michael Sumaquial, PMP, Mark Wuenscher, PMP

OSP INTERNATIONAL LLC
OSP INTERNATIONAL LLC
Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®