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Units of Production (UOP) is a depreciation method where expense is based on actual use rather than time. Assets like machinery, vehicles, or printing presses depreciate proportionally to the output they produce. More use = more depreciation.

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1. 1Depreciation per unit = (Cost − Salvage value) / Total estimated units of production
2. 2Annual depreciation = Units produced that year × Depreciation per unit
3. 3Total depreciation = actual use, not calendar-based
4. 4Asset life ends when total depreciable base is consumed

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