component depreciation

component depreciation definition - business

component depreciation

Depreciation of the individual components of an asset rather than depreciation of the asset as a whole. Component depreciation recognizes that an asset has individual parts that each have a different useful life compared to the whole asset. For example, a building shell might have a useful life of 40 years, while plumbing, wiring, and elevators are assigned a life of 15 years.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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