Question

The activity method of depreciation

a. is a variable charge approach.
b. assumes that depreciation is a function of the passage of time.
c. conceptually associates cost in terms of input measures.
d. all of these answers are correct.

Answer 1

The activity method of depreciation is a variable charge approach that associates cost with input measures, not the passage of time.

Step-by-step explanation:

The activity method of depreciation is considered a variable charge approach to depreciation. This method does not assume that depreciation is a function of the passage of time. Instead, it conceptually associates cost with input measures, such as the number of hours a piece of machinery is used or the number of units it produces. Due to this, the most accurate option would be that the activity method of depreciation is a variable charge approach.