Depreciation is the cost of a firm's equipment and building allocated over their useful life.

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Depreciation is defined as the allocation of a company's asset costs over the useful life of the asset. This is an accounting process that reflects the decrease in value of an asset due to wear and tear, obsolescence, or age. The costs of equipment and buildings are typically spread out over several years, with a portion of the cost allocated to each year based on the estimated useful life of the asset.

Depreciation Is the Cost of a Firm's Equipment and Building