Depreciation


GAO Glossary of Terms and Definition (September 2005)

Depreciation

The systematic and rational allocation of the acquisition cost of an asset, less its estimated salvage or residual value, over its estimated useful life. Depreciation reflects the use of the asset(s) during specific operating periods in order to match costs with related revenues in measuring income or determining the costs of carrying out program activities.

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Deschler, Lewis (1903-1976)

 

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