depreciation rates

Depreciation rates represent the percentage at which the value of an asset, like machinery or equipment, decreases over time due to wear, aging, or obsolescence. These rates help businesses allocate the cost of an asset over its useful life, reflecting its decreasing worth on financial statements. For example, if an asset has a depreciation rate of 10% annually, it means its value diminishes by that percentage each year, allowing companies to account for the asset's decreasing value systematically and accurately in their financial planning.