Question

The allocation of the cost of a tangible fixed asset is referred to as_____, whereas the allocation of the cost of an intangible asset is referred to as______.

Answer 1

Answer:

Depreciation

Amortisation

Explanation:

Depreciation is a method used in expensing the cost of a tangible fixed asset e.g. machinery, building

Amortisation is a method used in expensing the cost of an intangible asset e.g. patent

Different methods of depreciation and amortisation  :

Straight line

double declining

Units of activity

sum of the years

Answer 2

Depreciation is the allocation of cost of a tangible fixed asset while Amortization is the allocation of cost of an intabgible asset.

A tangible fixed asset are asset which are in physical form and are used to facilitate the day-to-day operation of the firm.

• Therefore, the allocation of cost of a tangible fixed asset is called Depreciation.

An intangible asset refers to asset that are not physical in nature. Asset such as patents, trademarks, copyrights are example of a company's intangible assets.

• Therefore, the allocation of cost of an intangible asset is called amortization.

Read more about this here

brainly.com/question/25078800

brainly.com/question/25152673