The _____ calculates depreciation based on usage instead of the years of service anticipated.
A) double-declining-balance method
B) Modified Accelerated Cost Recovery System (MACRS)
C) units-of-production method
D) straight-line method

Question

Quizplus · Accepted Answer

The units-of-production method calculates depreciation based on usage or the number of units produced or hours of operation. This method is best suited for assets whose useful life is based on the amount of usage rather than the passage of time.

The _____ Calculates Depreciation Based on Usage Instead of the Years