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the answer is C -- cost allocation
according the GAAP
Depreciation is a systematic and rational process of distributing the cost of tangible assets over the life of assets.Depreciation is a process of allocation.Cost to be allocated = acquisition cot - salvage valueAllocated over the estimated useful life of assets.Allocation method should be systematic and rational.
According to CFA level1
Depreciation is defined as the reduction in the value of a product arising from the passage of time due to use or abuse, wear and tear. Depreciation is not a method of valuation but of cost allocation
Depreciation is an assessment and allocation on a systematic basis to each accounting period during the useful life of the asset as per Accounting Standard of ICAI.
A.Valuation..................................
Surprised to see people answering Valuation. Depreciation is a process of C) Allocation.
Depreciation is not a method of valuation but of cost allocation
Answer (c) allocation =============
c-Allocation and some time Valuation
Depriciation is the process of valuation option-A
