Management Glossary

  Search Results: depreciation
depreciation
An accounting charge recognizing the annual reduction of value of a building, piece of equipment or other product with a long lifespan. Rather than accounting for the entire cost when purchased, depreciation charges a portion of the cost each year such that at the end of the item's life the value recorded on the company's book will equal its expected scrap or resale value.
Contributed by: ManagerWise Staff

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