Final answer:
The activity method of depreciation is a variable charge approach based on an asset's usage rather than time, making the first choice, answer choice a, correct. Option d
Step-by-step explanation:
The activity method of depreciation is often used to allocate the cost of an asset over its useful life based on its actual usage or activity level rather than passage of time.
This method is considered a variable charge approach because the amount depreciated each period can vary depending on how much the asset is used. For example, a delivery van might be depreciated based on the number of miles it is driven. Consequently, answer choice a is correct as the activity method is indeed a variable charge approach.
To address the other options: Choice b is incorrect because, in the context of the activity method, depreciation is not a function of time but rather a function of activity level or usage.
As for choice c, it is also incorrect because while the activity method does associate cost with usage, it does not necessarily do so in terms of input measures, which could imply a relationship to raw materials or other inputs. Therefore, choice d 'All of these answer choices are correct' is incorrect because only the first part, choice a, is accurate. Option d