Unit of Production Method

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Dictionary Says

Definition of 'Unit of Production Method'

A depreciation procedure used for property that is not in continuous use. The unit of production method is useful when the property’s value is more closely related to the number of units it produces than the number of years it is in use. It results in greater deductions being taken for depreciation in years when the asset is heavily used.
Investopedia Says

Investopedia explains 'Unit of Production Method'

In general, the IRS requires businesses to depreciate property using the Modified Accelerated Cost Recovery System (MACRS), but it allows businesses to exclude property from this method if it can be accurately depreciated by another method. The depreciation method must be chosen at the time the property is placed in service.
Search results for

'Unit of Production Method'

  • Unearth Profits In Oil Exploration And Production

    http://www.investopedia.com/articles/stocks/07/oil-gas.asp
    ... It is useful to look at each cost category on a unit of production basis to ... Accounting
    E&P companies may use the successful efforts method or the full cost ...

  • CFA Level 1 Study Guide - Assets - Depreciation Accounting ...

    http://www.investopedia.com/exam-guide/cfa-level-1/assets/depreciation-accounting.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Production ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/production-possibility-curves.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

  • CFA Level 1 Study Guide - Assets - Depreciation | Investopedia

    http://www.investopedia.com/exam-guide/cfa-level-1/assets/depreciation.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

  • Natural Gas Industry: An Investment Guide

    http://www.investopedia.com/articles/stocks/10/investing-in-natural-gas-guide.asp
    ... These costs are usually expressed on a unit of production basis ... Future Production
    Costs, $(3,916,222 ... The simplest method of calculating the net asset value is to ...

  • Continental Resources And The Bakken

    http://stocks.investopedia.com/stock-analysis/2010/Continental-Resources-And-The-Bakken-CLR1028.aspx
    ... pad on a 1,280 acre spacing unit at a 10 ... just reported the first completions under
    this development method. ... four wells had an average initial production rate of ...

  • CFA Level 1 Study Guide - Macroeconomics - Components of Marginal ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/marginal-product-revenue.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Trade ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/trade-efficiency.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

  • CFA Level 1 Study Guide - Microeconomics - Types of Markets & ...

    http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/markets-concentration-measures.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Terms of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/terms-trade.asp
    ... 5. Global Economic Analysis: 5.1 Introduction; 5.2 Production Possibility Curves;
    5.3 ... Statement Basics; 6.21 Cash Flow Computations - Indirect Method; 6.22 Cash ...

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