Management should select the depreciation method that
A) is easiest to apply.
B) best measures the plant asset's market value over its useful life.
C) best measures the plant asset's contribution to revenue over its useful life.
D) has been used most often in the past by the company.

Question

Quizplus · Accepted Answer

The depreciation method chosen by management should best reflect the plant asset's contribution to revenue over its useful life. This approach ensures that the expense recognized in the income statement matches the revenue generated by the asset, adhering to the matching principle in accounting.

Management Should Select the Depreciation Method That