depreciationamortization
Depreciation and amortization are accounting methods used to allocate the cost of an intangible or tangible asset over its useful life. While both processes reduce the book value of an asset, they apply to different types of assets.
Depreciation specifically refers to the allocation of the cost of tangible assets, such as buildings, machinery,
Amortization, on the other hand, is used for intangible assets. These are non-physical assets that have value
Both depreciation and amortization are non-cash expenses that impact a company's profitability and tax liability. They