Units-of-production method
Units-of-production method is a depreciation method that is based on usage and not on time. An example of units of production is the numbers of shoes a machine could produce in its expected useful life.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Units-of-production method. A depreciation method that is based on usage and not on time. An example of units of production is the numbers of shoes a machine could produce in its expected useful life.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
