The depreciation method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called:
A)Accelerated depreciation.
B)Declining-balance depreciation.
C)Straight-line depreciation.
D)Units-of-production depreciation.
E)Modified accelerated cost recovery system (MACRS)depreciation.

Question

Quizplus · Accepted Answer

Units-of-production depreciation allocates the cost of an asset based on usage, which is directly related to the number of units produced. This method is commonly used for assets such as machinery and equipment, where usage varies from period to period.

The Depreciation Method That Allocates an Equal Portion of the Total