The straight-line method is appropriate if usage of the asset varies considerably from year to year.

Question

Quizplus · Accepted Answer

The statement is false. The straight-line method assumes that the asset is used evenly throughout its useful life, so it's not appropriate if usage varies considerably from year to year. In that case, a more suitable method is the units-of-production method, which takes into account the actual usage of the asset in each period.

The Straight-Line Method Is Appropriate If Usage of the Asset