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Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Depreciation of administrative equipment is period cost because if production is done or not those assets will be depreciated hence cost will be charged as period 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.
period cost
YES
Net National product
In the US, the answer depends on what depreciable assets you are talking about.Depreciation on any depreciable asset that is directlyused in the production of goods is part of Manufacturing Overhead, and therefore is a product cost, which is included in the calculation of the value of both inventory and cost of goods sold. So, depreciation on a factory building and factory equipment directly used to manufacture a product are both product costs.Conversely, depreciation on equipment that is NOTdirectly used in production (e.g., depreciation on office computer equipment) is NOT a product cost.
it represents the undepreciated cost of existing equipment.
buliding
it represents the undepreciated cost of existing equipment.
Supplementary cost is the general cost of an undertaking as a whole including administration, interest, taxes, general maintenance, depreciation, and obsolescence.
Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.