Depreciation is a cost allocation method and has nothing to do with determining an asset's market value.

Name: Depreciation is a cost allocation method and has nothing to do with determining an asset's market value.
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Quizplus · Accepted Answer

Depreciation is the systematic allocation of the cost of an asset over its useful life, in order to match the cost of using the asset with the revenue it generates. It is not used to determine an asset's market value, which is determined by supply, demand, and other market factors.

Depreciation Is a Cost Allocation Method and Has Nothing to Do