The amount of depreciation using the useful life measured in units of use rather than time is called __________.

units of production method

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double digit declining method

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straight line method

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reducing balance method

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Solution

The correct option is B units of production method
The amount of depreciation using the useful life measured in units of use rather than time is called units of production method. Units of production method of depreciation estimates the depreciation based on the actual usage of the item. Units of production method depreciation begins when an asset begins to produce units and ends when the asset produce all units within estimated production capacity whichever comes first.

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