depreciation is classed as a fixed cost when using only the straight line method.
reducing balancing method is classed as 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.
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
It is considered as fixed overhead cost because it doesn't dependant on level of production
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.
According to my text book, depreciation is a Fixed cost
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
It is considered as fixed overhead cost because it doesn't dependant on level of production
yes..depreciation cost is the variable cost..
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
No. Depreciation would be considered an uncontrollable cost because it is fixed
no
no
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
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