Depreciation

Depreciation is the process of allocating the cost of a tangible asset over its useful life, reflecting its decline in value over time.

📈 Methods of Depreciation

Method	Description	Example
Straight-Line	Spreads cost evenly over the asset’s life	Office equipment
Declining Balance	Accelerated method, higher depreciation in early years	Vehicles, machinery
Units of Production	Based on usage or output	Manufacturing equipment