0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is depreciation added to fixed cost while calculating break even point?
no
Is depreciation expense under administrative expense?
Depreciation expense can be allocated to Administrative Expense or Selling & Marketing Expense or even to Cost Of Goods Sold. The amount of allocation and how that is done is specific to the type of business or industry.
When an asset is fully depreciated should the total accumulated depreciation for that asset be zeroed out?
After an asset is fully depreciated, the assets and accumulated depreciation accounts are zerod together in the beginning of the next accounting period. When an asset is fully depreciated but still operates in the company, accountants usually leave the asset and its accumulated depreciation accounts in the records even after it's fully depreciated and even through next periods, just to show that this asset still exists and operates.
What is another name for break-even analysis?
Cost-volume-profit analysis (CVP), or break-even analysis,
Is break-even point a quantitative analysis model?
Yes. Because break even analysis determines the sales level needed to break even in units or dollars (both are numbers) so it is quantitative.
What role does depreciation play in break-even analysis based on accounting flows?
based on accounting flows, depreciation is regarded as fixed cost; based on cash flows, depreciation is not included in fixed cost. so, break-even point by accounting flows is larger than cash break-even point. in the long term, depreciation should be counted. so, break-even by accounting flows is longer term in nature.
Is depreciation added to fixed cost while calculating break even point?
no
Is depreciation a product dost?
Depreciation is a period cost and not a product cost as depreciation is still charged even if there is no production or sale of goods.
Why is the calculation of depreciation based on estimated?
First of all we must have a clear belief that, Depreciation must always be estimated, it can never have a fixed value. Therefore the only way is to predict it. Even when we say we are calculating it, our calculation is our prediction -which can be proved to be correct and wrong too. But even so the calculation of depreciation itself is very important, if we don't calculate it , our non-current assets will be inflated in the balance sheet. Which means that our balance won't be accurate when the point of making financial statements is to have an accurate record.
How do you do the calculation for the break even point?
Breakeven point = Fixed cost / contribution margin ratio contribution margin ratio = sales - variable cost / sales.
Calculation of break-even point?
Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = (Sales - Variable Cost) / Sales
What is the depreciation rate for a king sized mattress and boxspring?
If you are looking for the tax depreciation, that information would be included in tax software, or on the IRS website. It classifies the item and has a standardized rate for each year it is in service. If you have one you are trying to sell, usually it is worth much less than half of what you paid for it, even if used lightly.
What is the depreciation rate for a king-sized mattress and boxspring.?
If you are looking for the tax depreciation, that information would be included in tax software, or on the IRS website. It classifies the item and has a standardized rate for each year it is in service. If you have one you are trying to sell, usually it is worth much less than half of what you paid for it, even if used lightly.
Is accumalted depreciation a liability?
No, even though accumulated depreciation has a credit balance, it is shown under assets. Accumulated depreciation is a contra T-account to a fixed tangible asset. For example, "Accumulated depreciation machines" is a contra T-account to "Machines". Contra T-accounts are presented together with the T-account they are connected with. Therefore, accumulated depreciation is shown on the debit side with assets. As it has a credit balance, the balance is subtracted. (The sign of a T-account 'flips' when the T-account is included on the opposite side on the balance sheet.)
What is a simple calculation?
a even number
Is depreciation beneficial if income is non taxable If not is it appropriate to remove it from the financial statements?
Depreciation doesnot have any effect when income is non taxable but even then depreciation is shown to reduce the cost of asset and allocate it to income statement of fiscal year.
Is it necessary to provide depreciation in the business running in loses?
it is necessary to provide depreciation even business is running in loses or in profit because depreciation provides fund for future and remove the burden of fund for purchasing new machinery when old machinery are broken down.
