Reference no: EM132563687

Black & Decker (B&D) manufactures cordless hedge trimmers that it sells to Wal-Mart. In order to produce that, B&D had to purchase a robotic machine that it can be used to produce 1 million hedge trimmers.

Question 1: Do you think B&D should account for depreciation on its manufacturing equipment the same way Wal-Mart accounts for depreciation on its registers at the checkout counters?

Question 2: If not, how should B&D account for its depreciation? Please remember the matching principle when thinking of your answer.