Depreciation Cost

What is Depreciation Cost?

Depreciation cost or simply depreciation, is the reduction in value of a fixed asset due to wear and tear.

Most fixed assets have a limited life, the exception being land, and therefore depreciate over time. An estimate of this depreciation cost is charged to the profit and loss account each accounting period and represents an expense of the business.

For further information on Depreciation Cost see the Wikipedia definition.

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Last modified May 21st, 2013 by Team

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