Which method can result in annual depreciation expense going up and down from period to period?
A) Reducing balance
B) Units-of-production
C) Straight line
D) No depreciation method

Question

Quizplus · Accepted Answer

The units-of-production method bases depreciation on the number of units produced or hours used instead of the passage of time, which can result in varying levels of depreciation expense from period to period depending on the level of production or usage. Therefore, this method can result in annual depreciation expense going up and down from period to period.

Which Method Can Result in Annual Depreciation Expense Going Up