Depreciation

: It aligns the cost of an asset with the revenue it helps generate during specific accounting periods.

: It primarily applies to physical assets like vehicles, machinery, and buildings; land is generally not depreciated. Causes of Depreciation - BYJU'S depreciation

Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life to reflect its decreasing value due to wear, tear, or obsolescence. Core Features of Depreciation : It aligns the cost of an asset