Which of the following depreciation methods best fits those assets that tend to wear out before they become obsolete?

Question

Quizplus · Accepted Answer

The units-of-production method is most suitable for assets that wear out before becoming obsolete because it links the cost of the asset to the actual usage, which is a more accurate reflection of the asset's useful life. This method allocates the cost of the asset over its expected use, so the amount of depreciation each year is based on the units produced or the hours of machine use, etc., rather than a fixed amount, as in the straight-line method.

Which of the Following Depreciation Methods Best Fits Those Assets