Straight-line depreciation is a method used in accounting to allocate the cost of a tangible asset over its useful life in equal annual amounts. This approach simplifies the depreciation process by dividing the difference between an asset’s purchase price and its salvage value by the number of years it is expected to be in use. This consistent expense allocation aids in financial reporting, making it easier for businesses to predict expenses and manage budgets. Straight-line depreciation is widely used due to its simplicity and clarity.