What is depreciation of an asset?

In every business there are certain assets of a fixed nature that are needed for the conduct of business operations. These assets have a definite span of life after the expiry of which the assets will lose their usefulness for the business operations. Fall in the value and utility of such assets due to their constant use and expiry of time is termed as depreciation. In other words, the process of allocation of the cost of a fixed asset over its useful life is known as depreciation.
Various methods have beeen devised for providing dpereciation. Different methods are suitable for different assets depending upon the nature and type of asset.