When the Unit of Production Method of Depreciation Is Used

question 80

Multiple Choice

When the unit of production method of depreciation is used, which of the following best describes depreciation expense?

• A) Depreciation expense will vary directly with output.
• B) Depreciation expense will vary directly with sales.
• C) Depreciation rate per unit will vary directly with output.
• D) Depreciation rate per unit will vary directly with sales.

---

Definitions:

Organizational Focus

The central concentration or specialty of an organization, often determining the scope of its operations and strategies.

Kickoff Meetings

Kickoff meetings are initial meetings that mark the beginning of a project or phase, where goals, expectations, roles, and guidelines are discussed among team members and stakeholders.

Project Office

A physical or virtual location where project management activities and administrative support for a project are centralized.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows equal to zero.