The linear depreciation formula is a simple and widespread method for calculating the depreciation of an asset over its useful life. It takes into account both the cost of the asset, as well as its expected lifetime of use. When applied to accounting, the linear deprecation formula can help businesses accurately track the cost of owning and operating an asset. By determining how much depreciation has occurred, businesses can make informed decisions about continuing operations and potential investments. Put simply, the linear depreciation formula can be thought of as a tool that allows businesses to budget for upcoming expenses and make better financial plans.