Asked by Molly Flynn on Jul 03, 2024
Verified
Using the units-of-production method of depreciation for equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used.
Units-of-Production Method
A depreciation method where the expense is based on the asset's usage, output, or units produced, rather than time.
Straight-Line Method
A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.
- Gain knowledge of diverse depreciation techniques and their influence on financial statements.
Verified Answer
CS
Campus SafetyJul 09, 2024
Final Answer :
False
Explanation :
The total depreciation expense over the life of the asset will be the same under both methods; the difference lies in the timing and pattern of the expense, not the total amount.
Learning Objectives
- Gain knowledge of diverse depreciation techniques and their influence on financial statements.
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