Allocation of the cost of a fixed assets over its useful life is called ___________.

Allocation

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Apportionment

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Depreciation

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Depletion

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Solution

The correct option is C Depreciation
Allocation of the cost of fixed assets over their useful life is called depreciation.
Depreciation is a decrease in the value of the fixed assets due to wear and tear, obsolescence and passage of time.
Depreciation is charged only on the fixed Tangible Assets.

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Similar questions

Q. Allocating the cost of a fixed asset over its useful life is called __________.

Q. Depreciation is a process of allocation of the cost of fixed asset.

___is a method of depreciation, in which the cost of the asset is spread uniformly over the life years by writing off a fixed amount every year, where as in ___ method of depreciation, a fixed rate of depreciation is charged on the book value of the asset over its useful life.

Q. Allocating the cost of an asset over its useful life is an application of __________.

Q. Depreciation Accounting has been defined by the ________ as " a system of accounting which aims to distribute the cost or other basic value of tangible capital assets less salvage (if any) over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner. It is a process of allocation and not of valuation".

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Allocation of the cost of a fixed assets over its useful life is called ___________.

The correct option is C DepreciationAllocation of the cost of fixed assets over their useful life is called depreciation.Depreciation is a decrease in the value of the fixed assets due to wear and tear, obsolescence and passage of time.Depreciation is charged only on the fixed Tangible Assets.

The correct option is C Depreciation
Allocation of the cost of fixed assets over their useful life is called depreciation.
Depreciation is a decrease in the value of the fixed assets due to wear and tear, obsolescence and passage of time.
Depreciation is charged only on the fixed Tangible Assets.