Allocating the cost of long-lived tangible assets used in the operations of a business is referred to as:

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Depreciation is the process of allocating the cost of long-lived tangible assets, such as buildings or equipment, over the period in which they are used in the business operations. This is done to match the cost of the asset to the revenue it generates and to reflect the gradual wear and tear or obsolescence of the asset over time.

Allocating the Cost of Long-Lived Tangible Assets Used in the Operations