3.8 : חישוב פחת: שיטת יחידות תפוקה

The unit of production method for depreciation is where the depreciation expense is based on the asset's actual usage or production level rather than its useful life.

This method benefits assets whose wear and tear is more closely related to their output, such as manufacturing and processing equipment.

For example, Paramount buys a machine for one hundred thousand dollars, and it is expected to produce five hundred thousand units over its lifetime, having a scrap value of ten thousand dollars.

Depreciation will be calculated by subtracting the scrap value from the purchase price and then dividing the result by expected production. Hence, depreciation would be eighteen cents per unit.

If the machine produces fifty thousand units in the first year, the depreciation expense would be nine thousand dollars. In the second year, the production increased to sixty thousand units, and then depreciation would be ten thousand eight hundred dollars.

This method provides a realistic and fair allocation of the machine's cost based on its actual usage.

As the method requires accurate production estimates, it involves complex record-keeping for units produced.