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

question 56

Multiple Choice

Units-of-production 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 company is a manufacturing company.
• D) the asset's use varies significantly from one period to another.

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Definitions:

Efficiency

The ability to accomplish a task or produce a desired outcome with minimum waste of time, resources, or effort.

Available Resources

The total assets, financial, human, or material, that are currently accessible for use in achieving goals or completing projects.

Output

Output refers to the goods or services produced by a business, system, or process within a given period.

Role Conflict

A situation in which there are contradictory expectations associated with a single role or multiple roles being performed by an individual.