how does the unit of production method help businesses 
the unit of production method can help companies take larger depreciation deductions in years when a given piece of equipment is more productive the units of production depreciation expense claimed in a year is based upon what percentage of an asset s production capacity was used up during that year the bottom linethe unit of production method calculates the depreciation of an asset s value over time the method is useful when an asset s value is more closely related to the number of units it produces than to the number of years it is in use greater deductions are often taken for depreciation in years when the asset is heavily used which offsets periods when the equipment experiences less use 