Which of the following statements best describes the purpose of depreciation?

A. Allocation of the cost of an asset to the periods in which services are received from the asset

B. A process of correlating the market value of an asset with its gradual decline in physical efficiency

C. Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value

D. Regular reduction of asset value to correspond to changes in market value as the asset ages

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