Why Can Depreciation Expense Be a Different Amount Each Year

question 97

Multiple Choice

Why can depreciation expense be a different amount each year using the units-of-production method?

• A)The method calculates expense based on the relationship between each year's output and total estimated output.
• B)The method calculates expense based on cost divided by the expected useful life.
• C)The units-of-production method is an accelerated depreciation method.
• D)The units-of-production method is based on the difference in the appraisal value of the asset from one year to the next.

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