Question:
Depreciation as a percentage of total expenses is maximum in which industry sector?
Depreciation as a percentage of total expenses is maximum in which industry sector?
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Always compare percentages instead of absolute values to find the maximum or minimum share in proportional data problems.
Updated On: Jul 29, 2025
- Chemical
- Electricity
- Diversified
- Machinery
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The Correct Option is C
Solution and Explanation
Let’s compute the depreciation as a percentage of total expenses for each sector:
Chemical: \( \frac{11,065}{119,316} \times 100 \approx 9.27% \)
Electricity: \( \frac{6,311}{56,789} \times 100 \approx 11.11% \)
Diversified: \( \frac{24,706}{86,790} \times 100 \approx 28.46% \)
Machinery: \( \frac{22,834}{150,257} \times 100 \approx 15.19% \) Clearly,
Diversified has the highest depreciation share in total expenses. \[ {\text{(c)}} \]
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