Asked by
Padmashri D Desai
on Nov 13, 2024Verified
When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
A) the double-declining-balance method
B) the straight-line method
C) the units-of-activity method
D) MACRS
Units-of-Activity Method
A depreciation method that allocates expense based on the number of units produced or the use of the asset over time.
Depreciation Expense
A measure of the wearing out, consumption, or other loss of value of a depreciable asset arising from use, effluxion of time, or obsolescence through technology and market changes.
Allocation of Cost
The process of assigning a cost or group of costs to one or more cost objectives, such as projects, functions, or departments.
- Accomplish skillfulness in depreciating assets via various strategies and recognize the considerations impacting method choice.
Verified Answer
NW
Learning Objectives
- Accomplish skillfulness in depreciating assets via various strategies and recognize the considerations impacting method choice.