Asked by Whian Bester on Jun 19, 2024
Verified
Which method of depreciation results in periodic depreciation expense that fluctuates from one period to the next,not necessarily in a steadily upward or downward direction?
A) Straight-line.
B) Units-of-production.
C) Modified accelerated cost recovery system.
D) Declining balance.
Units-Of-Production
A depreciation method that allocates an asset's cost based on its usage, output, or production, rather than the passage of time.
Modified Accelerated Cost Recovery System
A method of depreciation applied in the United States that allows for the accelerated write-off of property under the tax code.
Periodic Depreciation Expense
The allocated portion of the cost of a tangible asset over its useful life, recognized as an expense in a specific accounting period.
- Master the essential doctrines and arithmetic involved in the application of accelerated and double declining-balance methods for depreciation.
- Learn about the disparity, roles, and effects of multiple depreciation methods on financial accounts.
Verified Answer
AA
Azmina AfiqahJun 23, 2024
Final Answer :
B
Explanation :
Units-of-production method bases depreciation on actual usage or production during the period and can vary from one period to the next depending on the level of activity. This method is best suited for assets that are used more during peak periods and less during off-peak periods.
Learning Objectives
- Master the essential doctrines and arithmetic involved in the application of accelerated and double declining-balance methods for depreciation.
- Learn about the disparity, roles, and effects of multiple depreciation methods on financial accounts.