Discussion
Depreciation in economic analysis is the
Answer: A
Correct answer: systematic allocation of an asset's cost over its life
Depreciation is an accounting allocation, not a valuation and not a fund. It spreads the cost of an asset across the years that benefit from it, according to a chosen method. The fall in market price is a separate matter and generally follows a quite different path, and nothing is set aside unless a sinking fund is deliberately created.
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