When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
A) declining-balance
B) straight-line
C) units-of-production
D) MACRS

Question

Quizplus · Accepted Answer

Units-of-production method matches depreciation expense with the amount of revenue generated from the asset. This method is most appropriate when the usage of the asset varies from year to year. It bases depreciation expense on the amount of production or usage during the period.

When the Amount of Use of a Fixed Asset Varies