Depreciation is the systematic and rational allocation of
tangible and current asset cost over the periods benefited by the use of the
asset.
Depletion is the periodic allocation of the cost of natural
resources.
Amortization is the periodic cost allocation process for
intangible assets.
Depreciation, depletion and amortization are all periodical
allocation of cost of fixed assets, natural resorts and intangible assets
respectively and all charged to the revenue account. The difference among these
three items are that depreciation, depletion and amortization related to fixed
assets, natural resources and intangible assets respectively. Merchandising Transaction
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