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Double-Declining-Balance Method
A depreciation technique that accelerates the rate at which an asset loses value, doubling the rate of the straight-line depreciation method.
Straight-Line Method
A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.
Depreciation
The planned distribution of the costs associated with a tangible asset over its usage period.
Units-of-Activity Method
A depreciation method that allocates a fixed asset's cost based on its usage, activities, or units of production, reflecting wear and tear more accurately.
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