When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
A) double-declining-balance method
B) straight-line method
C) units-of-output method
D) MACRS

Question

Quizplus · Accepted Answer

The units-of-output method bases depreciation expense on the actual usage of the asset. This method matches the cost of the asset with the revenue generated by its use, making it the most appropriate choice when the amount of use of a fixed asset varies from year to year.

When the Amount of Use of a Fixed Asset Varies