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Depreciation is the systematic reduction in the value of a tangible asset over its useful life due to wear and tear, passage of time, usage, and normal deterioration. In construction management, depreciation is an important concept because construction equipment, machinery, buildings, and other fixed assets lose their service potential gradually while being used in projects. Depreciation helps in determining the true cost of using an asset, assists in estimating project costs accurately, and enables proper financial planning. It is also necessary for _________ _____ _________ ___ ________ ______ __________ _______ ________.
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