A principal objection to the straight-line method of depreciation is that it
A) provides for the declining productivity of an aging asset.
B) ignores variations in the rate of asset use.
C) tends to result in a constant rate of return on a diminishing investment base.
D) gives smaller periodic write-offs than decreasing charge methods.

Question

Quizplus · Accepted Answer

The straight-line method of depreciation spreads the cost of an asset evenly over its useful life, ignoring variations in how much the asset is used from one period to another. This can lead to inaccuracies in reflecting the actual wear and tear on the asset.

A Principal Objection to the Straight-Line Method of Depreciation Is