Question

Depriciation means an allocation of the cost of a plant asset to expense over ?

Answer 1

Explanation:

Depreciation is the process of allocating the cost of a plant asset to expense over its useful (service) life in a rational and systematic manner. Cost allocation provides for the proper matching of expenses and revenues in accordance with the matching (GAAP) principle.

Answer 2

Heya dost... ❤❤

--> Depreciation is the process of allocating the cost of long‐lived plant assets other than land to expense over the asset's estimated useful life. ... Net book value is an asset's total cost minus the accumulated depreciation assigned to the asset.

--> Therefore, the cost of the installation labor (wages and related fringe benefits) is part of the cost of the asset (and not an immediate expense of the accounting period). The total cost of the asset, including installation costs, will become an expense when the asset depreciated over the asset's useful life. !!