Management should select the depreciation method that
A) is easiest to apply.
B) best measures the long-lived asset's fair value over its useful life.
C) best measures the long-lived asset's contribution to revenue over its useful life.
D) has been used most often in the past by the company.

Question

Quizplus · Accepted Answer

The correct depreciation method should best measure the long-lived asset's contribution to revenue over its useful life, as this approach aligns the expense recognition with the revenue generated, adhering to the matching principle in accounting.

Management Should Select the Depreciation Method That