A company should depreciate a long-lived tangible asset to match part of the cost of the asset with the revenues generated by the asset.
One the most crucial responsibilities as a small businessman is expense management. Cost come in two flavors: fixed and variable. Although fixed and variable expenses have different effects on the firm, both are crucial to its profitability. Rent and leasing charges, salary, energy prices, insurance, and personal loans are a few examples of fixed costs. There are certain taxes that are fixed costs as well, such as company licenses. You should be cautious when introducing fixed expenses to your local company since you must pay them regardless of the volume you sell. Overhead is another name for fixed expenses.
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