The process of allocating the cost of plant and equipment over the time period in which they are used is referred to as:

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Depreciation is the process of allocating the cost of plant and equipment over the time period in which they are used. Depletion refers to the allocation of the cost of natural resources over their useful lives, while amortization is the allocation of the cost of intangible assets over their useful lives. Deferred costs refer to costs that have been paid but not yet recognized as expenses.

The Process of Allocating the Cost of Plant and Equipment