Question

The calculation for annual depreciation using the units-of-output method is:________

a. (Initial cost Estimated output) × Actual yearly output
b. (Depreciable cost Yearly output) × Estimated output
c. Depreciable cost Yearly output
d. (Depreciable cost Estimated output) × Actual yearly output

Answer 1

d. (Depreciable cost Estimated output) × Actual yearly output

Step-by-step explanation:

Units of Output depreciation = Cost - Residual Value × Period`s Production / Total Expected Production.

Note : Depreciation is dependable on depreciable cost (Cost less Residual Value)

The Option that is close to this formula is d.