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The correct answer is DEPRECIATION.

Depreciation is defined as the incremental cost of wear and tear on an asset.

Depreciation is an accounting concept that allows a business or individual to allocate the cost of a capital item over the useful life of the item.

The incremental cost of wear and tear of an asset primarily the tangible ones is called as depreciation.

What is an asset?

An asset is one of a monetary source of a company which is being acquired in order to get economic benefits in the upcoming years.

Depreciation is the concept used in the accounting process to record the decline in the original value of an asset over its economic life. It is applied only to the tangible assets, that is, those assets which have their real existence and not the intangible ones.

Therefore, the depreciation is the incremental cost of an asset representing by its wear and tear.

Learn more about the depreciation in the related link:

https://brainly.com/question/15085226

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