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depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable 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.
Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.
It is considered as fixed overhead cost because it doesn't dependant on level of production
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
According to my text book, depreciation is a Fixed 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.
Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.
It is considered as fixed overhead cost because it doesn't dependant on level of production
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Payroll contains the fixed part in the form of the basic salary or the wage paid. Other than that a worker might go for overtime and this comes under the variable part. Moreover any incentive such as commission etc also forms the variable part hence payroll is a semivariable expense.
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Fixed asset depreciation schedule shows the calculation of yearly depreciation expense which is scheduled to be charged to income statement for all fixed assets and the total amount of depreciation applicable to specific income statement of business.
There are three types of depreciation. Fixed Installment, Diminishing balance and Component Depreciation.
If fixed assets are properly maintained, depreciation is unnecessary do you agree.?
Unavoidable depreciation factors like age of the object.