What does Straight Line Rule mean? Read on to discover the definition & meaning of the term Straight Line Rule - to help you better understand the language used in insurance policies.
Straight Line Rule
The straight line rule is a method to determine the depreciation of an asset or how much value it loses annually. To calculate it, first subtract an asset's salvage value from its actual cost, and then divide that by the number of years in its useful life.
We hope the you have a better understanding of the meaning of Straight Line Rule.