Depreciation is the process of allocating the cost of a plant asset over its service life in

Question

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Depreciation should be allocated in a systematic and rational manner over the useful life of the asset. This means that the depreciation expense should be recognized consistently over the life of the asset and should reflect the decreasing value of the asset as it is used over time. Depreciation should not be based on market values or accelerated methods unless they are justified by the actual use of the asset.

Depreciation Is the Process of Allocating the Cost of a Plant