The correct answer is: B. Amortization
Amortization is the process of allocating the cost of an intangible asset over its useful life. It is a systematic and rational allocation of the cost of an asset over the periods in which it is expected to provide benefits.
An annuity is a series of equal payments made at regular intervals for a fixed period of time. The payments can be made for a specific number of years, or they can be made until a certain event occurs, such as the death of the annuitant.
Capital recovery is the process of recovering the cost of an asset over its useful life. It is a method of depreciation that takes into account the time value of money.
An annuity factor is a number that is used to calculate the present value of an annuity. It is a function of the interest rate and the number of payments.
In the context of the question, the distribution of the initial cost by a periodic changes to operation
as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called amortization. This is because amortization is the process of allocating the cost of an intangible asset over its useful life.