Amortization: A financial concept referring to the process of gradually paying off a debt over time through scheduled, typically fixed, payments. Each payment includes a portion that goes toward reducing the principal amount borrowed and a portion that covers the interest on the debt. Amortization can also refer to the spreading out of the cost of an intangible asset over its useful life for accounting and tax purposes. This allows businesses to write off the value of an asset incrementally, reflecting its consumption, depreciation, or obsolescence over time. In IT, for example, the cost of software or development of a technology project may be amortized over the period it is expected to provide value.
Categories: CC D1: Security Principles | CCSP D6: Legal - Risk and Compliance | CISM D1: Information Security governance | CISSP D1: Security and Risk Management | Security+ D5: Security Program Management and Oversight | SSCP D3: Risk Identification Monitoring and Analysis
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