Depreciation Period
Depreciation Period
Definition:
Depreciation period, also known as the useful life of an asset, is the estimated period of time that an asset will be used by a business. It is used to calculate the amount of depreciation that will be expensed each year.
The depreciation period is determined by a number of factors, including the type of asset, the expected wear and tear, the obsolescence of the asset, and the maintenance schedule for the asset.
Example:
For example, a car might have a depreciation period of 5 years, while a building might have a depreciation period of 20 years.