Question

______ method is used when repairs and Maintenance goes on increase. a) SLM method b) WDV method c) Machine hours method d) Production units method

Answer 1

production unit method

Answer 2

Answer:

Option d - The production units method is the correct answer.  

Explanation:

• Depreciation is calculated using the unit of production technique, which examines an asset's practical use in the manufacturing process rather than its time in use.
• This strategy is especially useful for assets that endure a lot of wear and tear based on real usages per unit, such as machinery or industrial equipment.
• Companies use this strategy to display higher depreciation expenses in more productive years, which can help offset other higher production expenses.

Hence, the production units method is when expenses increase regarding the repairs and maintenance.

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