Units-Of-Output
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Description
A depreciation method in which cost (minus residual value) is divided by the estimated units of lifetime output. The unit depreciation cost is multiplied by the actual units if output each year to compute the annual depreciation expense.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Depreciation#Units-of-production depreciation method
Learning Material
Covered in Topic(s)
| Plant & Intangible Assets |