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Q: How does depreciation affect budget?
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Related questions

Do you budget depreciation?

No


How should depreciation be treated in budget preparation by a nonprofit corporation?

How should depreciation be handled in a non profit budget?


Is depreciation expense part of a cash budget?

yes


Depreciation affect cash flow?

There is no affect of depreciation on cash flow that's why in indirect method of cash flow net income is adjusted for depreciation to calculate cash flow from operating activities.


Is depreciation considered part of the cash budget?

Depreciation is not part of cash budget as this is not cash expense rather it is just the allocation of fixed asset cost to specific fiscal year in which that fixed asset is used so there is no cash outflow due to depreciation and that’s why it is not included.


How does depreciation affect the cost of capital?

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


How does exchange rates depreciation affect the south African economy?

Exchange rates depreciation affect the south African economy because it leads to changes in inflation in the country' economy .


How does depreciation affect the profit margin?

Depreciation lowers the value of your assets. This in turn will lower your overall profit margin as well as your net worth.


I am preparing expense budget for 5 years how do i show and calculate depreciation expense?

First of all capital expenditure should be estimated and after that on the basis of fixed assets purchase assumption depreciation can be calculated.


How does depretion affect cash flows How do sunk costs affect the detrmination of cash flows. What is the project initial out lay?

Depreciation does affect cash flow indirectly. Using different methods of depreciating an asset will impact the depreciation expense.Even though depreciation expense is non-cash transaction, it indirectly affect cash flow through the income tax effect. Having higher depreciation expense can lower your taxable income, thereby reducing your income tax expense, which will change your cash outflow for taxes.


How does increased depreciation expenses affect tax-related cash flows?

depreciation is a non cash item which have no physical outflow ... when depreciation is applied on tax cash flow it saves tax resulting in decrease in cash outflow


How does its affect to our country?

it will affect our country by not letting the budget get control.