Accounting Noise
Categories: Accounting, Careers, Company Management, Tax, Trusts and Estates
In the dotted, estimate-y land of Statistics, noise is "error" which isn't really error. It's a natural part of the estimation part of business, where the perfect is really the enema of the good.
You chose to use a given depreciation rate for some piece of capital equipment, and that rate varies a bit, depending on usage. So after Year 7, you'd estimated that you'd depreciate $17,378,323, but instead ended up depreciating $17,377,989. The difference is Accounting Noise.
