What is the primary focus of straight-line depreciation?

The primary focus of straight-line depreciation is the systematic reduction of asset value. This accounting method allocates the cost of a tangible asset evenly over its useful life, allowing businesses to reflect the gradual decrease in value of their fixed assets. By spreading the expense over the asset's lifespan, companies can accurately match the depreciation expense with the revenue generated from the asset, providing a clearer picture of financial performance over time.

Straight-line depreciation assumes that the asset will lose value equally throughout its useful life, which simplifies accounting and budgeting. It helps businesses in financial planning and tax preparation by creating a predictable and consistent expense each accounting period. This method is widely used because of its straightforward approach and ease of calculation.