The method most commonly used to compute depletion is the
A) straight-line method.
B) double-declining-balance method.
C) units-of-activity method.
D) effective interest method.

Question

Quizplus · Accepted Answer

The units-of-activity method is most commonly used to compute depletion because it is the most appropriate method for natural resources that are used up based on their production or usage. This method matches the depletion expense with the actual usage of the resource, rather than assuming a steady rate of depletion over time.

The Method Most Commonly Used to Compute Depletion Is the