Amortization is the process by which businesses spread the allocation of an intangible asset's cost over its useful life.

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Amortization is a method used by businesses to allocate the cost of intangible assets (such as patents, trademarks, goodwill, and copyrights) over their useful life. It is similar to depreciation, which is the allocation of the cost of tangible assets over their expected useful life.

Amortization Is the Process by Which Businesses Spread the Allocation