Units-of-production is an appropriate depreciation method to use when
A)it is impossible to determine the productivity of the asset.
B)the asset's use will be constant over its useful life.
C)the company is a manufacturing company.
D)the asset's use varies significantly from one period to another.

Question

Quizplus · Accepted Answer

The units-of-production method is most suitable when the wear and tear on an asset varies significantly from one period to another, as it allows depreciation to be based on the actual usage of the asset.

Units-Of-Production Is an Appropriate Depreciation Method to Use When