Final answer:
The Units of Activity method is not generally suitable for buildings, as their depreciation is less tied to usage and more influenced by time and other non-usage related factors.
Step-by-step explanation:
The Units of Activity method of depreciation is designed to allocate an asset's cost based on its usage, activities, or the actual physical wear and tear it experiences. This method is most suitable for assets whose usefulness is more closely tied to their usage rather than simply the passage of time. Examples include factory machinery and delivery equipment, which depreciate in direct proportion to the amount they are used or the number of units they produce.
However, the Units of Activity method is generally not suitable for assets like buildings. The useful life of a building is typically not influenced by the number of activities that take place within it but by the passage of time and other factors such as wear and tear from the environment, technological obsolescence, or changes in building codes. Therefore, depreciation methods based on time, like straight-line or declining balance methods, are more appropriate for buildings.