Explain the purpose ofcharging depreciation and the compbnents you will consider while determining the amount ofdeprecia
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The purpose of charging depreciation are as follow:-
The purpose of depreciation is to match the cost of a productive asset (that has a useful life of more than a year) to the revenues earned from using the asset. Since it is hard to see a direct link to revenues, the asset's cost is usually allocated to (assigned to, spread over) the years in which the asset is used.
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