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Basic Question 13 of 19
Which depreciation method bases depreciation expense for a given period on actual use?
B. Double-declining-balance method
C. Units-of-production method
A. Straight-line method
B. Double-declining-balance method
C. Units-of-production method
User Contributed Comments 2
| User | Comment |
|---|---|
| kalps | Sum of the years = Cost - salvage X n/x where n is the year starting from 1 and n is the total number of years i.e. less depn in first few years than during the end |
| anricus | Kalps, should be more depreciation in the earlier years not less... refer to notes! This reflects economic reality where assets lose more of their value in the earlier years! |
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Learning Outcome Statements
analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets
CFA® 2024 Level I Curriculum, Volume 2, Module 7.