0
In the US, the answer depends on what depreciable assets you are talking about.
Depreciation on any depreciable asset that is directlyused in the production of goods is part of Manufacturing Overhead, and therefore is a product cost, which is included in the calculation of the value of both inventory and cost of goods sold. So, depreciation on a factory building and factory equipment directly used to manufacture a product are both product costs.
Conversely, depreciation on equipment that is NOTdirectly used in production (e.g., depreciation on office computer equipment) is NOT a product cost.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Is depreciation on a machine a period cost or product cost?
product cost
Is depreciation of delivery truck a period cost?
Yes depreciation of delivery truck is period cost because it is not product cost as it is not require to make the units of product.
Depreciation on delivery truck is product cost?
Depreciation on delivery truck is period cost as it is not necessary for the making of product.
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Is depreciation of factory buildings classified as a period cost or product cost?
If factory building is used in production of units of product then it will be added to product cost as it is part of product to manufacture.
Is depreciation a product dost?
Depreciation is a period cost and not a product cost as depreciation is still charged even if there is no production or sale of goods.
Is depreciation on a machine a period cost or product cost?
product cost
Is depreciation of delivery truck a period cost?
Yes depreciation of delivery truck is period cost because it is not product cost as it is not require to make the units of product.
Depreciation on delivery truck is product cost?
Depreciation on delivery truck is period cost as it is not necessary for the making of product.
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Is the depriciation cost is direct cost?
Depreciation is an indirect cost as there is no separate identification in product cost that which cost is depreciation as deprecation is a overhead cost that’s why it is indirect cost.
Is depreciation of factory buildings classified as a period cost or product cost?
If factory building is used in production of units of product then it will be added to product cost as it is part of product to manufacture.
Is depreciation of administrative equipment product cost or period cost?
Depreciation of administrative equipment is period cost because if production is done or not those assets will be depreciated hence cost will be charged as period cost.
What is the cost of depreciation of capital equipment minus GNP?
Net National product
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
Dpreciation equals 5 percent Product Cost equals 1000000 When will it depreciate completely?
If the product cost is Rs 10,00,000 & Depreciation equals 5% (annually) (Sine nothing is mentioned about it), Then annual depreciation is Rs 50000 which means that the product will be depreciated completely in 20 years, i.e. (10,00,000/50000 = 20)
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
