If a company uses the units of production method for calculating depreciation on its factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will
A) be constant.
B) vary with unit sales.
C) vary with sales revenue.
D) vary with production.

Question

Quizplus · Accepted Answer

The units of production method for calculating depreciation is based on the actual number of units produced by the machinery, rather than the passage of time or constant usage, which means that the credit to accumulated depreciation will vary with production.

If a Company Uses the Units of Production Method for Calculating