For income statement purposes, depreciation is a variable expense if the depreciation method used is

Question

Quizplus · Accepted Answer

Under units-of-production method, the depreciation charges vary with the production output. Hence, depreciation is treated as a variable expense in the income statement. In contrast, straight-line, increasing charge, and declining-balance methods are considered as fixed expenses because they allocate an equal amount of depreciation expense over the asset's useful life.

For Income Statement Purposes, Depreciation Is a Variable Expense If