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Depreciation is a process of cost allocation and not valuation What does this mean?
NaahGeraldo
Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.
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∙ 15y ago
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What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
The systematic allocation of land's cost to expense is called depreciation?
true
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 included as a cash flow in capital budgeting?
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
In accountancy what does depreciation refer to?
In accountancy depreciation refers to two different aspects: 1. the decrease in value of assets and 2. the allocation of the cost of assets to periods in which the assets are used.
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
Does the journal entry for depreciation involve Cash account?
No, Depreciation is the process of allocation of fixed asset cost for it's useful revenue earning value to each fiscal year's income statement. So it does not affect cash.
The systematic allocation of land's cost to expense is called depreciation?
true
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.
What is decipriation ol capital?
It seems like you might be referring to depreciation of capital. Depreciation is the allocation of the cost of a tangible asset over its useful life. This process helps spread out the cost of the asset over its expected usage period, reflecting its declining value due to wear and tear or obsolescence.
Is depreciation included as a cash flow in capital budgeting?
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
In accountancy what does depreciation refer to?
In accountancy depreciation refers to two different aspects: 1. the decrease in value of assets and 2. the allocation of the cost of assets to periods in which the assets are used.
What is depreciation and why is it included in the balance sheet?
Depreciation is allocation of fixed asset cost to income statement of useful life of asset that's why shown as reduction in fixed asset value.
What is the process of assigning indirect costs?
Cost allocation...
Why is human resources important to the development of industry?
How the opportunity cost can be applied to the production process for the allocation of resources. How the opportunity cost can be applied to the production process for the allocation of resources.
Depreciation is a process of?
Depreciation is a process of allocating fixed asset cost portion to specific single fiscal year in which that asset is used to generate revenue.
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
