what is depreciation in accounting 
depreciation records the gradual loss of value of an asset over time the asset will eventually become less usable and efficient as time goes on and will be worth less as a result depreciation is recorded as an expense typically over a period during which the business still expects to be able to earn some revenue from its use 4the bottom lineadministrative expenses are those that are incurred to allow a business to function they don t directly pay for the production of goods or services they effectively allow a business to function so they re unavoidable they re flexible however and can be tweaked when budget cuts are necessary they re also tax deductible in some cases 