Accessibility Menu

What Is the Straight Line Method?

By Anders BylundUpdated Nov 13, 2024 at 9:26 AM

Key Points

  • The straight line method spreads asset costs evenly over its lifespan, aiding budget forecasts.
  • Its simplicity is favored by many tax authorities, making it a widely used accounting tool.
  • Businesses using this method enable clearer financial health evaluations for investors.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.