The units-of-production method does not take into account the passage of time.

Units-of-production Method

A method of depreciation that allocates the cost of an asset based on its usage, production, or units of activity rather than the passage of time.

Passage of Time

Refers to the progression of time and its implications, often related to depreciation, amortization, and other time-sensitive accounting practices.

Understand the considerations for selecting a depreciation method based on asset usage and financial reporting goals.

Verified Answer

Final Answer :

True

Explanation :

The units-of-production method of depreciation is based on the output or usage of the asset, rather than the passage of time.

Learning Objectives

Understand the considerations for selecting a depreciation method based on asset usage and financial reporting goals.