In the units of production method, depreciation expense is based on what?

In the units of production method, depreciation expense is based on what?

Step 1: Understand that depreciation is the reduction in value of an asset over time.
Step 2: Learn that the units of production method is one way to calculate this depreciation.
Step 3: Know that this method focuses on how much the asset is used or produced.
Step 4: Realize that instead of time, depreciation is calculated based on the actual number of units produced or hours used.
Step 5: Conclude that the more the asset is used, the higher the depreciation expense will be.

No concepts available.