straight line depreciation



  • noun a form of depreciation that divides the cost of a fixed asset evenly over each year of its anticipated lifetime


  • noun depreciation calculated by dividing the cost of an asset, less its residual value, by the number of years it is likely to be used. Various methods of depreciating assets are used: under the straight line method, the asset is depreciated at a constant percentage of its cost each year while with the reducing balance method the asset is depreciated at a higher rate in the early years and at a lower rate later.