Straight-Line Depreciation Method

Home » CMA Glossary Term » Financial Statements and Reporting » Straight-Line Depreciation Method

Straight-line depreciation method is an accounting technique used to allocate the cost of a tangible asset evenly over its useful life. This method calculates depreciation by subtracting the asset’s salvage value from its initial cost and dividing the result by the number of years of its expected life. The straight-line depreciation method is favored for its simplicity and consistency in financial reporting.

CMA Prep Course

CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.