The depreciation method that estimates the number of units of service or output that can be provided by an asset and allocates the depreciable cost of the asset on the basis of the use or output during each period is called the units-of-output or units-of-production method.

Question

Quizplus · Accepted Answer

This statement accurately describes the units-of-output or units-of-production method of depreciation.

The Depreciation Method That Estimates the Number of Units of Service