# Depreciation

*Last updated: 2026-06-22*

> A logistics operator acquires a truck and, rather than expensing the full purchase price at once, spreads the cost across the asset's expected useful life – that process is depreciation.

A logistics operator acquires a truck and, rather than expensing the full purchase price at once, spreads the cost across the asset's expected useful life – that process is depreciation. It reflects the economic consumption of a fixed asset driven by age, wear, and technological obsolescence. In transport and logistics, depreciation applies to vehicle fleets, warehouses, handling equipment, forklifts, and IT systems. As a calculated cost element it feeds directly into freight rate pricing and smooths the impact of large capital expenditures on the profit-and-loss account. The choice between straight-line and declining-balance methods produces different cost profiles, with tangible consequences for tax liability, capital planning, and competitive bidding.

**Source:** [https://en.wikipedia.org/wiki/Depreciation_(accounting)](https://en.wikipedia.org/wiki/Depreciation_(accounting))

## Quick Facts

| Property | Value |
|---|---|
| Term | Depreciation |
| Language | EN |
| Word count | 108 |
| Last updated | 2026-06-22 |
| Source | https://en.wikipedia.org/wiki/Depreciation_(accounting) |

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