What is the term for the gradual expensing of costs over time?

The term for the gradual expensing of costs over time is amortization. Amortization is commonly used in accounting to describe the process of spreading the cost of an intangible asset over its useful life. This practice allows businesses to account for the expense incrementally, reflecting its diminishing value on the financial statements.

In contrast to depreciation, which applies to tangible assets like equipment and buildings, amortization is specifically for intangible assets, such as patents, copyrights, or franchises. By amortizing these costs, organizations can match expenses to the revenues generated by the assets, improving financial accuracy. This gradual approach helps in financial planning and provides a clearer picture of a company's assets and liabilities over time.

The other terms listed, though related to financial concepts, do not describe the gradual expensing of costs in the same manner: depreciation pertains to tangible assets, accrual refers to the recognition of revenue or expenses when they are incurred regardless of cash flow, and capitalization relates to recording costs as assets rather than expenses.