Asked by Bethany Hinkle on May 31, 2024

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The units-of-activity depreciation method provides a good match of expenses against revenue.

Units-Of-Activity

A depreciation method that allocates expense based on the actual usage or activity level of an asset.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.

  • Set apart the procedures for calculating depreciation and estimate the depreciation expense.
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JB
Jaquaisha BroadhurstJun 02, 2024
Final Answer :
True
Explanation :
The units-of-activity depreciation method matches the depreciation expense with the actual usage or activity of the asset, making it a good match of expenses against revenue. This method is particularly useful for assets that are used heavily during certain periods and have low or no usage during other periods.