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nordsb [41]
3 years ago
6

Units-of-activity is an appropriate depreciation method to use when

Business
1 answer:
Flura [38]3 years ago
5 0

Answer:

1. the productivity of the asset varies significantly from one period to another.

Explanation:

The units of production depends upon the following information:

1. Purchase value of an asset

2. Residual value

3. Total Estimated production

4. Production units of each year

The formula is given below:

= (Original cost - residual value) ÷ (estimated production bolts)

Now for the particular year, it would be

= Production units × depreciation per units

Hence, the appropriate option is 1.

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