Businesses acquire resources to operate https://maallmedic.com/marginal-cost-how-to-calculate-formula-3-examples/ and grow. Accounting for this decline accurately represents a company’s financial performance and position. Spreading the cost of these items over their benefit period provides a clearer picture of profitability by matching the expense of using an asset with the revenue it helps generate. Understanding Intangible Assets and Amortization Expense Amortization refers to the allocation of the cost of an intangible...
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