Composite or group depreciation is a depreciation system

whereby the years of useful life of the various assets in the group

are added together and the total divided by the number of

items the original cost of all items in a given group or class of

assets is retained in the asset account and the cost of

replacements is charged to expense when they are acquired the cost of individual units within an asset group is charged

to expense in the year a unit is retired from service a straightline rate is computed by dividing the total of the

annual depreciation expense for all assets in the group by the

total cost of the assets.

the correct answer is a straightline ratw is computed by dividing the total of the annual depreciation expensefor all assets in the group by the total cost of the assets.