What term describes a systematic allocation of the cost of an intangible asset over its estimated useful economic life?

Explanation

• Amortization is the periodic allocation of the cost of intangible assets (patents, copyrights, trademarks) over their useful lives.
• Depreciation allocates the cost of tangible fixed assets (machinery, buildings, equipment).
• Depletion allocates the cost of natural resource reserves (timber, mineral deposits, oil fields).