• Units of Production Depreciation Method:
    This method provides for depreciation by means of a fixed rate per unit of production. Under this method, one must first determine the cost per one production unit and then multiply that cost per unit with the total number of units the company produced within an accounting period to determine its depreciation expense. \[\text{Depreciation expense per unit} = \frac{\text{total acquisition cost} - \text{salvage value}}{\text{the total units the machine can produce over its lifetime}}\]
    \[\text{Depreciation expense} = \text{depreciation expense per unit} \times \left({\text{number of units produced during an accounting period}}\right)\]