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A Company Decided to Use the Units of Production Method

Question 70

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

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