The calculation for annual depreciation using the units-of-output method is
A)Depreciable cost / Estimated output × Actual yearly output
B)Depreciable cost / Yearly output
C)Initial cost / Estimated output × Actual yearly output
D)Depreciable cost / Yearly output × Estimated output

Question

Quizplus · Accepted Answer

The units-of-output method calculates depreciation based on the actual output of the asset in a given year. The formula for annual depreciation using this method is Depreciable cost / Estimated output × Actual yearly output. This takes into account the depreciation of an asset based on how much it has been used over a given period of time.

The Calculation for Annual Depreciation Using the Units-Of-Output Method Is