Declining Balance Depreciation is an accounting method used to allocate the cost of an asset over its useful life. This method accelerates depreciation, meaning that a larger portion of the asset's cost is expensed in the earlier years. It is commonly used for assets like vehicles and machinery, where the value decreases more rapidly at the beginning. In this method, a fixed percentage is applied to the asset's remaining book value each year. As a result, the depreciation expense decreases over time, reflecting the asset's declining value. This approach is beneficial for businesses that want to match higher expenses with higher revenues in the early years of an asset's use.