A company uses the units of activity method to depreciate its delivery trucks. How would this method be applied under both GAAP and IFRS?

• A. The trucks are depreciated based on the number of miles driven each year.
• B. The trucks are depreciated using a revaluation model.
• C. The trucks are depreciated at a constant rate over their useful life.
• D. The trucks are depreciated at an accelerated rate, reducing the book value more quickly in the early years.

Answer: (A)