When comparing the units-of-output method of depreciation with straight-line depreciation:

Multiple Choice

  • The depreciation expense in the first year will always be greater under units-of-output method.
  • The depreciation expense in the first year will always be less under the units-of-output method.
  • The depreciation expense in the first year will always be the same under both the methods.
  • The depreciation expense in the first year may be greater than, equal to, or less under the units-of-output method.