What is the term for the portion of a plant asset's cost that is transferred to an expense account during its useful life?

The term for the portion of a plant asset's cost that is transferred to an expense account during its useful life is depreciation expense. Depreciation represents the systematic allocation of the cost of a tangible asset over its useful life. By recognizing depreciation expense, businesses comply with the matching principle of accounting, which states that expenses should be matched to the revenues they help generate.

As an asset is utilized, its value is gradually expensed on the income statement through depreciation, reflecting the wear and tear or obsolescence of the asset. This process accounts for the reduction in value of fixed assets like machinery, buildings, and vehicles over time and helps provide a more accurate picture of a company's financial performance.

In contrast, the other options do not accurately represent this concept. Asset allocation may refer to the distribution of an investment portfolio, capital expense indicates a substantial expenditure for acquiring or improving assets, and cost of goods sold applies to inventory and the direct costs associated with producing goods sold by a business. These terms do not specifically address the allocation of an asset's cost as it is expensed throughout its useful life.