Units-of-Production (UOP) Depreciation Formula

Below you will find descriptions and details for the 1 formula that is used to compute units-of-production depreciation values.

Depreciation per unit of production:

where P is the purchase price of the item being depreciated, SV is the item's salvage value, and ETU is the estimated total number of units that the item will contribute to producing during its useful life span.

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