Definition
Depreciation is the accounting method for allocating the cost of tangible assets over their useful life. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Depreciation. Once they agree it means “Accounting method for allocating the cost of tangible assets over their useful life”, the argument becomes a decision.
Common mistake
Using Depreciation as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Depreciation method
Specific approach used to calculate how asset value decreases over time.
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Depletion
Accounting method for allocating the cost of natural resources over time.
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Deployment
Process of implementing and rolling out software, systems, or business processes.
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Deregulation
Removal or reduction of government regulations in a particular industry.
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