Explanation:

Depreciation:
Depreciation refers to the decrease in the value of an asset over time due to wear and tear, obsolescence, or any other factor that reduces its usefulness or value. It is a way of allocating the cost of an asset over its useful life.

Methods of Depreciation:
There are various methods of depreciating assets, such as the straight-line method, declining balance method, and written down value method. Each method has its own advantages and is suitable for different types of assets and industries.

Written Down Value Method:
Under the written down value method, also known as the reducing balance method or diminishing balance method, the asset is depreciated at a fixed percentage of its book value each year. The depreciation expense is higher in the earlier years and gradually decreases over time.

Reasons for choosing the written down value method:
Kanika Enterprises follows the written down value method of depreciating machinery due to the following reasons:

1. Consistency:
The written down value method ensures consistency in the treatment of depreciation. By applying a fixed percentage to the book value each year, the company can consistently depreciate its machinery in a systematic manner. This allows for easier comparison of financial statements over time and facilitates consistent reporting.

2. Comparability:
The use of the written down value method enables comparability between different periods and companies. Since the depreciation expense is based on a fixed percentage of the book value, it allows for a standardized approach to depreciation. This makes it easier to compare the financial performance of Kanika Enterprises with other companies in the same industry.

3. Convenience:
The written down value method is convenient to apply as it simplifies the calculation of depreciation expense. The fixed percentage can be easily applied to the book value of the machinery each year, resulting in a predictable and consistent depreciation charge. This saves time and effort in calculating depreciation and ensures that the financial statements are prepared accurately and efficiently.

Therefore, the correct answer is option 'C' - Consistency. The written down value method of depreciating machinery is followed by Kanika Enterprises to ensure consistency in the treatment of depreciation, comparability between different periods and companies, and convenience in calculation.