The method most commonly used to calculate natural resource depreciation is the
A) straight-line method.
B) diminishing-balance method.
C) units-of-production method.
D) revaluation method.

Question

Quizplus · Accepted Answer

The units-of-production method is most commonly used for calculating natural resource depreciation because it allocates the cost of the resource based on the amount of resource extracted or used during the period, which closely matches the actual consumption of the resource.

The Method Most Commonly Used to Calculate Natural Resource Depreciation