how-does-an-overestimation-of-residual-value-affect-the-depreciation-expense-cal

Question

How does an overestimation of residual value affect the depreciation expense calculated using the units of production method?

Accepted Answer

It decreases the depreciation expense per unit.

Answer

It has no effect on the depreciation expense per unit.

Answer

It results in a higher total depreciation expense.

Answer

It increases the depreciation expense per unit.