Answered

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What factor must be present to use the units-of-production (activity) method of depreciation?

A. Total units to be produced can be estimated.
B. Production is constant over the life of the asset.
C. Repair costs increase with use.
D. Obsolescence is expected.

Sagot :

GinnyAnswer

Final answer:

The factor needed for units-of-production depreciation is the ability to estimate total units produced.


Explanation:

The factor that must be present to use the units-of-production method of depreciation is:

  • A. Total units to be produced can be estimated.

This method is based on the actual usage or output of the asset, where depreciation expense varies based on the level of asset usage rather than time.


Learn more about Depreciation methods here:

https://brainly.com/question/38551167


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