Question

In which of the following methods, the cost of the asset is not spread over in equal proportion during its useful economic life?

• A. Sum of years Digits Method
• B. Written down value method
• C. Units of production method
• D. All of the above

Answer 1

Answer: (D)

All of the above

The cost of the asset is spread over in equal proportion during the useful economic life is the straight-line method as the amount of depreciation is the same in this method.

The cost of the asset is not spread over the useful life in the case of the sum of years digits methods, written down value method and units of production method as the amount of depreciation keeps on decreasing under this method.