Which of the following statements best describes the purpose of depreciation?

• A. Regular reduction of asset value to correspond to changes in market value as the asset ages
• B. A process of correlating the market value of an asset with its gradual decline in physical efficiency
• C. Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value
• D. Allocation of the cost of an asset to the periods in which services are received from the asset