The cost of plant (less net salvage) recovered over the life of the plant through a reduction of income. This expense reflects the "using up" of plant (due to wear and tear, obsolescence, etc.) in the generation of income.
gradual reduction of the value of a fixed asset and gradual application of this cost to the expenses of a business over the useful life of the asset.
The income statement account which contains a portion of the cost of plant and equipment that is being matched to the time interval shown in the heading of the income statement. (There is no depreciation expense for land.) To Top