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For anything other than land, which is not allocated, the reclassification of tangible assets is called depreciation (for anything other than Natural Resources) or depletion (for natural resources) expense.
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Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
Distinguish between depreciation policy and the concept of depreciation?
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
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.
What is the entry for accumulated depreciation?
Debit depreciation accountCredit accumulated depreciation
How would you define a book cost?
Book cost ; sunk cost. A cost incurrence where the cash expenditure has already occurred, such as the cost of depreciation for a machine purchased several years ago.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
Gross profit margin define?
EBITDA Earnings Before Interest Tax Depreciation and Amoortisation Also Revenue minus costs.
When would a company consider using accelerated depreciation?
There are many reasons that a company may consider using accelerated depreciation. The main reason being that by using accelerated depreciation, this would decrease their tax payments.
How are accumulated depreciation and depreciation related?
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
What is the depreciation on a used Mitsubishi car?
The depreciation on a used Mitsubishi car is different for every car. There is no given set limit on depreciation for a used Mitsubishi car. Dealers would know more.
How are accumulated depreciation and depreciation expensese related?
Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.
Define the term 'supplementary cost'?
Supplementary cost is the general cost of an undertaking as a whole including administration, interest, taxes, general maintenance, depreciation, and obsolescence.
Why accumulated depreciation exceed depreciation expense?
Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses that’s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well.
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
Distinguish between depreciation policy and the concept of depreciation?
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
What would a permanent accounts include accumulated depreciation?
yes
