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units of production method of depreciation

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

The depreciation method based on the number of units produced by the asset rather than on the passage of time. This method is also referred to as the units of activity method because depreciation is based on some activity rather than years of useful life. To learn more, see Explanation of Depreciation.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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