Question: What is the main advantage of using the units of production method?

Options:

1. It simplifies accounting records.
2. It matches expenses with actual usage.
3. It provides a higher depreciation expense in early years.
4. It is easier to calculate than other methods.

Correct Answer: It matches expenses with actual usage.

Solution:

The units of production method matches the depreciation expense with the actual usage of the asset, providing a more accurate reflection of its wear and tear.