Use of the units-of-production method of depreciation results in
A) varying effects on profit as it depends on actual usage each year.
B) equal effects on profit each year.
C) the least effect on profit compared to other methods.
D) the greatest effect on profit compared to other methods.

Question

Quizplus · Accepted Answer

The units-of-production method of depreciation results in varying effects on profit because it is based on the actual usage of the asset each year, leading to different depreciation expenses depending on how much the asset is used.

Use of the Units-Of-Production Method of Depreciation Results in