depreciation rate
- noun
- /dɪˌpriːʃiˈeɪʃən reɪt/
- Specialized
- The accountant calculated the depreciation rate for the office equipment to ensure accurate tax reporting.
Examples
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Understanding the depreciation rate helps investors make informed decisions about asset purchases.
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If the depreciation rate goes down, then the inventory line will move, right?
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Human capital is individual-specific and nontransferable, and such investments have a low depreciation rate.
Academic text (1992) -
Depends on depreciation rates.
Blog text (19) -
We could significantly change depreciation rates on equipment and eliminate the tax deduction for interest expense; I am sure other tax advantages could be created that would favor labor over newer technologies.
Blog text (1) -
In 2022, the depreciation rate for new vehicles was estimated to be around 20% in the first year.
Synonyms
The percentage by which property or equipment loses value over a period for accounting
Surface Forms
Morphology
The meaning 'the rate at which the value of an asset decreases over time' is directly and transparently derived from combining 'depreciation' (decline in value) with 'rate' (amount per time). This compositional 'X rate' pattern is cross-linguistically common and would be understandable to a B1 learner who knows both constituent words, even if contextual details (e.g. tax use) are domain-specific.
Etymology
Depreciation rate comes from two simple ideas: the word depreciation, meaning an item 'losing value', and rate, meaning how fast something happens. Imagine a car getting older each year—the depreciation rate measures how quickly its value goes down, which is why accountants use it for company books and taxes.