What characterizes Double-Declining-Balance Depreciation?

Double-declining-balance depreciation is characterized by including a fixed percentage of the net book value of the asset each year. This method accelerates the depreciation expense, meaning that a larger portion of the asset's cost is expensed in the earlier years of its useful life.

This approach involves taking twice the straight-line depreciation rate and applying it to the book value of the asset at the beginning of each year. As a result, since the book value decreases each year, the absolute dollar amount of depreciation expense also decreases over time. This aligns with how C describes the method—focusing on a fixed percentage applied to the net book value, which is crucial for understanding the nature of double-declining-balance depreciation.

This method is often used for assets that lose value more quickly in the earlier years of their life, making the selection of this answer appropriate to represent the characteristics of this depreciation method effectively.