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 depreciation method allocates a varying amount of depreciation each year based on an asset's usage. This method is ideal for assets whose depreciation is directly related to the level of production or usage, such as equipment or machinery. The straight-line method allocates equal amounts of depreciation each year, the annuity method uses a fixed periodic payment to recover an asset's cost, and the double-declining-balance method allocates a higher amount of depreciation in the earlier years of an asset's life.

Which of the Following Depreciation Methods Allocates a Varying Amount