Depreciation is considered a type of Blank______.Multiple choice question.selling expensetaxincomeoperating expense

Depreciation is considered a type of operating expense.

Explanation:

Depreciation refers to the method of allocating the cost of a tangible asset over its useful life. This accounting practice is crucial in determining a company's profitability as it reflects the wear and tear of physical assets, such as machinery, buildings, and vehicles. By treating depreciation as an operating expense, businesses ensure that the costs associated with these assets are appropriately matched with the revenues they help generate during a specific period. This approach aligns with the matching principle in accounting, which states that expenses should be recorded in the same period as the revenues they generated. Consequently, for financial reporting and tax purposes, depreciation directly impacts the income statement by reducing taxable income, thus making it an essential element of overall business operations.