In accounting, the term commonly used for the systematic allocation of the cost of tangible assets over their useful lives is:

• A. amortization
• B. impairment
• C. depreciation
• D. valuation

Answer: (C)

Depreciation is the systematic allocation of the cost of tangible assets over their useful lives. It reflects how assets like equipment or buildings wear down or lose value as they are used, so their cost is spread out as an expense over the periods that benefit from the asset. This contrasts with amortization, which applies to intangible assets; impairment, which is a write-down when an asset’s recoverable amount falls below its carrying value; and valuation, which is about estimating an asset’s current worth rather than allocating cost over time. So depreciation best fits the description.