Allocation of the historic costs of fixed assets against the annual revenue they generate is called:________

An asset loses value over time as a result of use, damage, or obsolescence. Depreciation is the measurement for this decline. Description: A loss in an asset's value, or depreciation, can also be brought on by other reasons like bad market conditions, etc.
A business may depreciate an asset under depreciation expense as Rs. 20,000 each year for a period of five years if it buys a delivery vehicle for Rs. 100,000 and expects to use it for that long.
During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period. Amortization of assets with predetermined useful lives is included in depreciation.
Depreciation rate (SLM) is calculated using the following formula: (100 -% of the purchase price at the sale)/Useful life in years. Depreciation is calculated as (Purchase Price - Salvage Value)/Useful Life or Purchase Price * Depreciation Rate.

Allocation of the historic costs of fixed assets against the annual revenue they generate is called: depreciation.

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