Asked by

Padmashri D Desai
on Nov 13, 2024

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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.
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Nathan WhitneyNov 17, 2024
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