Question

The allocation of the cost of a tangible fixed asset is referred to as_____, whereas the allocation of the cost of an intangible asset is referred to as______.

Answer 1

Depreciation

Amortisation

Step-by-step explanation:

Depreciation is a method used in expensing the cost of a tangible fixed asset e.g. machinery, building

Amortisation is a method used in expensing the cost of an intangible asset e.g. patent

Different methods of depreciation and amortisation :

Straight line

double declining

Units of activity

sum of the years