Asked by Bethany Hinkle on May 31, 2024
Verified
The units-of-activity depreciation method provides a good match of expenses against revenue.
Units-Of-Activity
A depreciation method that allocates expense based on the actual usage or activity level of an asset.
Depreciation Method
A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.
- Set apart the procedures for calculating depreciation and estimate the depreciation expense.
Verified Answer
JB
Jaquaisha BroadhurstJun 02, 2024
Final Answer :
True
Explanation :
The units-of-activity depreciation method matches the depreciation expense with the actual usage or activity of the asset, making it a good match of expenses against revenue. This method is particularly useful for assets that are used heavily during certain periods and have low or no usage during other periods.
Learning Objectives
- Set apart the procedures for calculating depreciation and estimate the depreciation expense.
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