A method that allocates an equal portion of the total depreciable cost for an item of property, plant and equipment to each unit produced is called:
A) Accelerated depreciation.
B) Declining-balance depreciation.
C) Straight-line depreciation.
D) Units-of-production depreciation.
E) Equivalent depreciation.

Question

Quizplus · Accepted Answer

Units-of-production depreciation is a method that allocates an equal portion of the total depreciable cost to each unit produced. This method is ideal for assets that are used in production activities, and the cost is allocated based on the actual usage of the asset.

A Method That Allocates an Equal Portion of the Total