Question

Which of the following methods of calculating depreciation uses measures other than time?

a. Straight-line
b. Diminishing-balance
c. Units-of-production
d. None of these

Answer 1

The units-of-production method is the depreciation method that uses measures other than time, as it is based on actual usage or output.

Step-by-step explanation:

The method of calculating depreciation that uses measures other than time is c. Units-of-production. The straight-line method represents a fixed depreciation expense over the useful life of the asset. The diminishing-balance method accelerates depreciation over time, but it still fundamentally relies on time as the measure. In contrast, the units-of-production method calculates depreciation based on the actual usage or output of the asset, rather than the passage of time. This method is particularly useful for assets whose wear and tear are more closely related to the amount of production they contribute to rather than the number of years they are in service.