Cost allocation for an intangible asset is referred to as

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Amortization is the process of allocating the cost of an intangible asset over its useful life. This is similar to depreciation for tangible assets, but instead of physical wear and tear, it accounts for the asset's diminishing value over time. Depletion is the allocation of the cost of natural resources, while accretion is the increase in an asset's value due to natural growth or accumulation. Capitalization refers to the initial recognition and recording of an asset's cost as an addition to the balance sheet.

Cost Allocation for an Intangible Asset Is Referred to as