Using the units-of-activity method of depreciating factory equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used.

Question

Quizplus · Accepted Answer

The total amount of depreciation expense over the life of the asset will be the same under both methods; what differs is the timing of the expense recognition, not the total amount depreciated.

Using the Units-Of-Activity Method of Depreciating Factory Equipment Will Generally