Cumulative
Definition: Cumulative value refers to the sum or total of a particular quantity or value over a specified period or set of occurrences.
Example: Suppose you have a business and each month you track the total sales. The cumulative value of sales at the end of each month is the sum of all sales up to that point.
Month 1 Sales: $10,000
Month 2 Sales: $12,000
Cumulative Sales at the end of Month 2: $10,000 (Month 1) + $12,000 (Month 2) = $22,000
In this example, the cumulative sales at the end of Month 2 represent the total sales from the beginning of the business.
WDV Value (Written Down Value)
The term "WDV" stands for "Written Down Value," and it is commonly used in the context of depreciation accounting. The Written Down Value represents the book value of an asset after accounting for its accumulated depreciation. In essence, it reflects the reduced value of the asset on the books.
The formula to calculate the Written Down Value (WDV) is straight forward:
WDV=Original Cost−Accumulated Depreciation
Book Value
Book Value and WDV value are same as formula.
Book Value =Original Cost−Accumulated Depreciation
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