Depreciation is a process of cost allocation, not a process of valuation.

Name: Depreciation is a process of cost allocation, not a process of valuation.
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Depreciation is the systematic allocation of the cost of a long-term asset over its useful life. It is a process of cost allocation and not a process of valuation. Depreciation simply recognizes the spreading of the cost of an asset over its useful life, and it does not determine the current market value of the asset.

Depreciation Is a Process of Cost Allocation, Not a Process