Units of production

Depreciation based on how much an asset is used, such as tonnes mined or hours operated, relative to its expected total output. It matches the expense to activity and is common in mining and energy.

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Related terms

Tax and depreciation

• Accelerated depreciation
• Diminishing value
• Double declining balance
• Sum-of-the-years' digits
• Tax deferral
• Tax timing strategies
• Temporary full expensing / instant asset write-off