This study investigates the cost allocation theory for depreciation from 1918 to 2002 in Japan. First，we examine some authors' theories for depreciation: that is，theory by Ryozo Yoshida (1928)，Seitaro Suyama (1929), Shotaro Takase (1931)，and the Tokyo Chamber of Commerce and Industry (Materials in 1934). And we analyze the views for depreciation by Tetsuzo Ota from 1918 to 1962. He argued that cost allocation essentially referred to recovery of invested capital. But it is assumed in this paper that depreciation theory in Japan has been based on Tetsuzo Ota's early approach or dynamic accounting theory. And the Business Accounting Principles in Japan now prescribe cost allocation theory for depreciation in accordance with the dynamic accounting theory. However，the term which means' the reserve for renewal theory for depreciation has been generally accepted. Therefore，the term which means the reserve for renewal theory for depreciation was adopted as a term for depreciation in 1934 in Japan.