If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will

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The units-of-production method bases depreciation on the usage or production of the asset. The credit to accumulated depreciation will vary with production since it is based on the number of units produced. As more units are produced, the asset is used more, and therefore more depreciation expense is recognized.

If an Industrial Firm Uses the Units-Of-Production Method for Computing