Q.The process of allocating the cost of an intangible asset over a period of time is called ______.

Amortisation is the systematic allocation of the cost of an intangible asset over its useful life.

When the cost of a long-term asset is spread over the years it benefits the business, different terms are used depending on the asset:

• Depreciation — for tangible fixed assets (machinery, furniture, buildings).
• Depletion — for wasting/natural-resource assets (mines, oil wells).
• Amortisation — for intangible assets (goodwill, patents, trademarks, copyrights). …