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 productivity of the asset varies significantly from one period to another.
D) the company is a manufacturing company.

Question

Quizplus · Accepted Answer

The units-of-production method of depreciation is most appropriate when the wear and tear on an asset is more closely related to how much it is used rather than the passage of time. This method calculates depreciation based on the asset's output or usage, making it suitable for assets whose productivity varies significantly from one period to another.

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