Units of Production Depreciation Flashcards
1
Q
what is units of production depreciation
A
a variable cost depreciation method where the expenses mirror the actual physical use of the asset
2
Q
what is step 1
A
write down what you know (asset cost, residual value, useful units, depreciation cost per unit etc.)
3
Q
what is step 2
A
build a depreciation schedule
4
Q
how many columns does units of production depreciation schedule have
A
6
5
Q
what is the additional column
A
“number of units produced”
6
Q
what is step 3
A
calculate the depreciation expense, accumulated depreciation & book values for each period
7
Q
A
