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Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.
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Is depreciation fixed cost?
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
Can you refer depreciation as fixed cost?
no
Is depreciation and amortization a fixed cost?
no
Is it depreciation variable cost or fixed cost?
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
Is depreciation on factory machinery fixed cost?
Yes
Is depreciation of sales facilities a fixed or variable expense when calculating contribution margin?
According to my text book, depreciation is a Fixed cost
Is depriciation a fixed cost?
Yes depreciation is a fixed cost of business which is an allocation of fixed asset cost over period of asset life.
Is depreciation on equipment fixed or variable?
Depreciation is a fixed cost because variable cost is that cost which change with the change in the production units but it doesn't put any effect on depreciation as depreciation of the equipment will remain same no matter you produce maximum number of units or produce no unit in fiscal year.
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
Why you have depreciation?
Depreciation is used to allocate the fixed cost of asset to specific fiscal years during which that fixed asset is used to earn revenue if depreciation is not used then all cost is charged to one fiscal year which is against the matching concept.
