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depreciation is classed as a fixed cost when using only the straight line method.

reducing balancing method is classed as a variable cost.

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Q: Is it depreciation variable cost or fixed cost?
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Related questions

Is buiding depretiation a variable cost?

Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.


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 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.


Is depreciation on manufacturing equipment a variable cost?

Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.


Is straight-line depreciation on equipment fixed or variable?

It is considered as fixed overhead cost because it doesn't dependant on level of production


Is the depriciation cost is variable cost?

yes..depreciation cost is the variable cost..


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


Fixed cost variable cost equals?

Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost


A project has earnings before interest and taxes of 6500 fixed costs of 40000 a selling price of 12 a unit and a sales quantity of 10000 units Depreciation is 8500 What is the variable cost per unit?

Sales (10000 * 12) = 120000 Less: Fixed Cost = 40000 Less: Depreciation = 8500 Less: Variable Cost = 65000 (Balancing Figure) ---- PBIT = 6500 Variable Cost per unit = 65000/10000 = 6.5 per unit