Regular and systematic reduction in income that transfers asset value to expense over time is called _____.
A) appreciation
B) contribution margin
C) depreciation
D) benchmarking

Question

Quizplus · Accepted Answer

Depreciation is a process of allocating the cost of an asset over its useful life. This is a systematic reduction in the value of an asset that is used for production, operation, or other business activities. It is a common accounting practice that helps to allocate costs to the periods in which the asset is used, rather than in the period in which it was acquired. Appreciation refers to an increase in asset value, contribution margin is a measure of profitability, and benchmarking is a process of comparing performance against industry standards.

Regular and Systematic Reduction in Income That Transfers Asset Value