Final answer:
The Activity method of depreciation does not rely on the passage of time but rather on the asset's usage or production level.
Step-by-step explanation:
The depreciation method that is not based on the passage of time is the Activity method, also known as the units of production method. Unlike the straight-line, declining-balance, and sum-of-the-years’-digits methods, the Activity method calculates depreciation based on the actual usage or production level of the asset, which means it correlates with the asset's activity rather than the mere passage of time.
This method is particularly useful for assets whose wear and tear is more closely related to how much they are used rather than how old they are. For example, a piece of manufacturing equipment might depreciate more rapidly during periods of high production than during times of low activity.