A company decided to use the units-of-production method to calculate depreciation on a car to be driven by the sales manager. The amount of annual depreciation will vary with which of the following?
A) Age of the car.
B) Balance in accumulated depreciation.
C) Number of kilometers the car is driven.
D) Amount of maintenance expense incurred on the car.

Question

Quizplus · Accepted Answer

The units-of-production method calculates depreciation based on the actual usage of the asset, in this case, the number of kilometers the car is driven.

A Company Decided to Use the Units-Of-Production Method to Calculate