What does the straight-line method of depreciation involve?

The straight-line method of depreciation involves spreading losses evenly over time, which reflects how the value of an asset decreases at a consistent rate over its useful life. This method simplifies the accounting process by allocating an equal portion of the asset's cost as an expense in each period, making it easier to project value and manage financial reporting.

This approach is especially useful for assets that gradually wear out or lose value in a predictable manner, as it does not account for fluctuations in market value or changes in property usage over time. Instead, it provides a stable, consistent expense allocation that can be beneficial for budgeting and financial forecasting. This makes it a straightforward and widely used method for businesses and individuals to track the depreciation of their assets.