Use-Factor Depreciation Methods View Asset Consumption as Related Primarily to Asset

question 63

Essay

Use-factor depreciation methods view asset consumption as related primarily to asset use or output. These methods provide periodic depreciation charges based on the amount of use of the asset in a given period. The service life of assets under the use-factor methods may be expressed either as hours of service or units of production.
Required:
Identify the general limitations of the use-factor depreciation methods.

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