Rambo Footwear is a Chinese shoe manufacturing company.The company spends a large amount to buy machinery for a new plant that it has set up.Instead of adding this in the current year's expense the company's accounting spreads the cost over a period of fifteen years.This accounting practice of spreading costs is called ________.

Question

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A)Depreciation is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life. The company is using depreciation in this case.
B)Depreciation is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life. The company is using depreciation in this case.
C)Depreciation is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life. The company is using depreciation in this case.
D)Depreciation is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life. The company is using depreciation in this case.
E)Depreciation is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life. The company is using depreciation in this case.

Rambo Footwear Is a Chinese Shoe Manufacturing Company