Asked by Molly Flynn on Jul 03, 2024

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Using the units-of-production method of depreciation for equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used.

Units-of-Production Method

A depreciation method where the expense is based on the asset's usage, output, or units produced, rather than time.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

  • Gain knowledge of diverse depreciation techniques and their influence on financial statements.
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CS
Campus SafetyJul 09, 2024
Final Answer :
False
Explanation :
The total depreciation expense over the life of the asset will be the same under both methods; the difference lies in the timing and pattern of the expense, not the total amount.