Wednesday 26 October 2011

A company decided to use the units of production method to calculate depreciation on a car to be driven by the?

A company decided to use the units of production method to calculate depreciation on a car to be driven by the sales manager. The amount of annual depreciation will vary with the

A) age of the car.

B) balance in accumulated depreciation.

C) number of miles the car is driven.

D) amount of maintenance expense incurred on the car.

E) number of oil changes the car has.A company decided to use the units of production method to calculate depreciation on a car to be driven by the?C) number of miles the car is driven.

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Units of production for a car is the total number of miles it is expected to be able to be used for in its estimated useful life.

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