Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life to reflect its decreasing value due to wear, tear, or obsolescence. Core Features of Depreciation
: It primarily applies to physical assets like vehicles, machinery, and buildings; land is generally not depreciated. Causes of Depreciation - BYJU'S depreciation
: It consistently decreases the "book value" (original cost minus accumulated depreciation) of fixed assets over time. Depreciation is an accounting method that allocates the
: It aligns the cost of an asset with the revenue it helps generate during specific accounting periods. depreciation