Depreciation of an asset based on the number of hours of usage is a(n)
A)time-based method
B)accelerated method
C)replacement method
D)activity-based method

Question

Quizplus · Accepted Answer

Depreciation of an asset based on the number of hours of usage is an activity-based method. This method is used to allocate the cost of an asset over its useful life based on the actual usage or activity levels of the asset. It is a more accurate method than time-based or straight-line methods as it takes into consideration the actual usage of the asset.

Depreciation of an Asset Based on the Number of Hours