Units-Of-Activity Is an Appropriate Depreciation Method to Use When

question 59

Multiple Choice

Units-of-activity is an appropriate depreciation method to use when

• A) it is impossible to determine the productivity of the asset.
• B) the asset's use will be constant over its useful life.
• C) the productivity of the asset varies significantly from one period to another.
• D) the company is a manufacturing company.

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Definitions:

Metric Equivalent

Metric equivalent is the corresponding value of a measurement expressed within the metric system, used for converting units like inches to centimeters.

Microgram

A unit of mass equal to one millionth of a gram, commonly used in medicine and science to measure small weights and doses.

Volume

The amount of space an object, such as a drug, occupies.

Drug

A substance used to diagnose, treat, cure, or prevent diseases in humans or animals, often regulated by health authorities.