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In the theory of selective optimization with compensation,"optimization" refers to the idea that:
Straight-Line Rate
A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.
Annual Straight-Line Depreciation
A method of calculating the depreciation of an asset, spreading its cost evenly over its useful life.
Straight-Line Depreciation Rate
A method of calculating the depreciation of an asset, where the asset's cost is evenly distributed over its useful life.
Useful Life
The estimated duration an asset is expected to be economically usable, with normal wear and tear.
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