What issues need to be addressed to determine how to allocate the cost of an asset?

Question

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The issues that need to be addressed to determine how to allocate the cost of an asset are the depreciable base (which is the cost of the asset less its residual value), its useful life (which refers to the expected number of years that the asset will be used), and the method of cost apportionment (which can be straight-line, declining balance, or units of production). Depreciation method and probable future benefit are related to determining the annual depreciation expense, which is a result of the cost allocation process.

What Issues Need to Be Addressed to Determine How to Allocate