Which of the following methods of computing depreciation is production based?
A) Straight-line
B) Declining-balance
C) Units-of-activity
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Units-of-activity is the only method of computing depreciation that is production based, as it is based on the actual usage or output of the asset rather than its age or estimated remaining life. Straight-line and declining-balance are both based on the passage of time, while option D is incorrect because one of the answer choices (Option C) is production based.

Which of the Following Methods of Computing Depreciation Is Production