Depreciation is a term used in accounting, economics and finance to spread the cost of an asset over the span of several years. In simple words we can say that depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. In accounting, depreciation is a term used to describe any method of attributing the historical or purchase cost of an asset across it… (More on Depreciation)