The units-of-production method is useful when the utilization of an asset is fixed.

Name: The units-of-production method is useful when the utilization of an asset is fixed.
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Question

The units-of-production method is useful when the utilization of an asset is fixed.​

Quizplus · Accepted Answer

The units-of-production method is useful when the utilization of an asset varies over time. It is based on the idea that an asset's depreciation should be based on the actual usage it undergoes during its useful life, rather than just the passage of time.

The Units-Of-Production Method Is Useful When the Utilization of an Asset