The computation of depletion expense is most closely related to which method for computing depreciation?
A)straight-line
B)units-of-production
C)double-declining balance
D)modified accelerated cost recovery system

Question

Quizplus · Accepted Answer

Depletion expense is calculated based on the number of units extracted or produced. The units-of-production method for depreciation also calculates an asset's consumption based on the number of units produced or used. Therefore, the computation of depletion expense is most closely related to the units-of-production method for computing depreciation.

The Computation of Depletion Expense Is Most Closely Related to Which