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Some costs are not expensed but are allocated (depreciated) over a number of years. This is because the cost of the service or benefit should

Some costs are not expensed but are allocated (depreciated) over a number of years. This is because

the cost of the service or benefit should be associated, as best as is possible, with the accounting period and revenue to which it relates.

some assets are consumed more slowly than others.

management wants to minimize income taxes.

accounting standards require some assets to be carried at replaceable value.

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