The units-of-production method of depreciation charges a varying amount of expense for each period of an asset's useful life depending on its usage.

Question

Quizplus · Accepted Answer

The statement is correct. The units-of-production method of depreciation is based on the usage or output of the asset, and therefore the expense charged varies from period to period based on how much the asset was used.

The Units-Of-Production Method of Depreciation Charges a Varying Amount of Expense