MACRS allocates the same amount of cost each period as determined by the total initial cost divided by the number of years of useful life of the machines.

Question

Quizplus · Accepted Answer

MACRS (Modified Accelerated Cost Recovery System) does not allocate the same amount of cost each period; instead, it uses accelerated depreciation methods that allocate higher depreciation costs in the earlier years of an asset's life and lower costs in the later years.

MACRS Allocates the Same Amount of Cost Each Period as Determined