Which of the following methods would be a typical choice when asset use fluctuates significantly from period to period?
A)Straight line method
B)Double declining method
C)Units of production method
D)Depletion

Question

Quizplus · Accepted Answer

The units of production method is the best choice when asset use fluctuates significantly from period to period because it matches the asset's depreciation to its actual usage. This method calculates the depreciation based on the number of units produced or hours used each period, rather than assuming a constant rate of use. This results in a more accurate reflection of the asset's value over time.

Which of the Following Methods Would Be a Typical Choice