A Company Decided to Use the Units-Of-Production Method to Calculate

Multiple Choice

A company decided to use the units-of-production method to calculate depreciation on a car to be driven by the sales manager. The amount of annual depreciation will vary with which of the following?

A) Amount of maintenance expense incurred on the car.
B) Age of the car.
C) Balance in accumulated depreciation.
D) Number of kilometres the car is driven.