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Units-Of-Activity
A depreciation method where the expense is based on the number of units the asset produces or hours it operates, rather than the passage of time.
Useful Life
The estimated period of time that an asset is expected to be used by an entity, affecting its depreciation calculation.
Declining-Balance Method
The declining-balance method is an accelerated depreciation technique that applies a constant rate of depreciation to an asset's book value each year, resulting in decreasing depreciation expenses over time.
Straight-Line Method
A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.
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