Depreciation

The process used to allocate the cost of a long-lived property to the accounting periods benefited

Depreciation is the systematic allocation of the depreciable amount of a long-term asset over its useful life, reflecting consumption of economic benefits and matching cost with revenue.

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

- Example: Teams reference **Depreciation** when defining terms in manuals, policies, or training materials.

- Why it matters: Improves clarity and consistency across documentation and decision-making.