Final answer:
The process described is known as consolidation, where multiple assets' service lives are averaged for accounting purposes. This practice simplifies the depreciation accounting for assets with varying service lives yet should not be confused with amortization, capitalization, or depreciation itself.
Step-by-step explanation:
The process that involves averaging the service life of many assets and applying depreciation as though a single unit existed is known as consolidation. This is a common accounting practice where multiple assets are grouped together to apply a consistent depreciation method. It simplifies the accounting process when dealing with numerous assets that have varying service lives.
However, the actual depreciation methods could vary, and thus, other options like amortization (often used for intangible assets), capitalization (which refers to recording an expense as an asset rather than an immediate cost), and straightforward depreciation (an expense that reduces the value of an asset as a result of wear and tear, age or obsolescence) are distinct from consolidation.