Which of the following depreciation methods allocates a varying amount of depreciation each year based on an asset's usage?

Question

Quizplus · Accepted Answer

The units-of-production method allocates depreciation based on the asset's usage, such as hours of operation or miles driven. This makes it the only choice that fits the criteria given in the question. The straight-line method allocates an equal amount of depreciation each year, the annuity method is not a recognized depreciation method, and the double-declining-balance method allocates a higher depreciation expense in the early years of an asset's life.

Which of the Following Depreciation Methods Allocates a Varying Amount