Method Depreciation is a business term that refers to the process of gradually reducing the value of an asset over time. It’s used by companies to spread out the costs associated with using or owning certain items, such as computers or furniture. The strategy helps smooth out cash flow and can also save companies money on taxes. Method Depreciation allows companies to accurately record their income and expenditures over the lifespan of an asset, thereby making financial reporting more accurate and reliable. Additionally, it provides incentives for businesses to upgrade assets in a timely manner, keeping them at peak efficiency while maintaining profitability.