For income statement purposes,when is depreciation expense considered to be a variable expense?
A)When units-of-output method is used.
B)When double-declining-balance method is used.
C)When straight-line method is used.
D)Never.

Question

Quizplus · Accepted Answer

Depreciation expense is considered a variable expense when units-of-output method is used because it varies with the level of production or units of output. In contrast, with the double-declining-balance method and the straight-line method, depreciation expense is considered a fixed expense as it remains constant over the useful life of the asset.

For Income Statement Purposes,when Is Depreciation Expense Considered to Be