Which kind of depreciation is the TRUE deterioration in the value of capital in each period of time?

Question

Quizplus · Accepted Answer

Economic depreciation reflects the true deterioration in the value of capital in each period of time, taking into account the wear and tear, obsolescence, and other factors that lead to a decrease in the asset's market value. Depreciation credits and allowances are more related to tax and accounting rules, while a depreciation schedule is a plan outlining the timing and amounts of depreciation expenses.

Which Kind of Depreciation Is the TRUE Deterioration in the Value