No. Depreciation would be considered an uncontrollable cost because it is fixed
no
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
Depreciation is called a notional cost because it cannot be measured in real terms.
HIstorical cost based depreciation tends to increase profits when there is inflation
No. Depreciation would be considered an uncontrollable cost because it is fixed
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.
no
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.
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
Depreciation is called a notional cost because it cannot be measured in real terms.
HIstorical cost based depreciation tends to increase profits when there is inflation
Non-Recoverable depreciation is depreciation that is not recoverable, that is the obvious answer. In most states a standard Replacement Cost Policy will pay an insured for the replacement cost minus deprecation. As long as you replace the item within a specified amount of time which is typically anywhere from 90 days to a year, you will be able to recover the amount that was depreciated. In a Actual Cash Value type policy this depreciation is NOT recoverable. It is very important to know what type of policy you have before you need it!
Only depreciation for all those fixed assets which directly involve in manufacturing of production volume is part of direct cost while all other depreciation is not part of direct cost and included in indirect cost classification.
product cost