How can the main depreciation methods be classified?
A) Time-based and cost-based methods
B) Time-based and activity level-based methods
C) Production-based and activity level-based methods
D) None of these

Question

Quizplus · Accepted Answer

The main depreciation methods can be classified as time-based and activity level-based methods. Time-based methods include straight-line, declining balance, and sum-of-the-year digits, whereas activity level-based methods include units-of-production and double-declining balance. Cost-based methods are not a classification of the main depreciation methods. Production-based methods are not a common classification for depreciation methods either.

How Can the Main Depreciation Methods Be Classified