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Explain the concept of performance management.
Depreciable Cost
The cost of a tangible asset minus its estimated salvage value, over which depreciation is calculated.
Depreciation Expense
An accounting method allocating the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.
Expected Useful Life
The estimated length of time a fixed asset will be used in normal operations.
Placed in Service
Refers to the point in time when an asset begins to be used by a business for its intended purpose, marking the start of depreciation.
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