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Depreciation
The method of distributing the expense of a physical asset through its lifespan, accounting for depreciation, outdatedness, or aging.
Allocation Process
The method of distributing costs among different departments, products, or services for accounting purposes.
Expense Recognition Principle
An accounting principle that expenses are recognized and recorded when they are incurred, regardless of when cash payments are made.
Expenses
Costs incurred in the operation of a business to earn revenue, including operating and non-operating expenses.
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