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It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
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∙ 13y ago
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Is depreciation of factory plant and equipment a factory overhead cost?
YES
Is depreciation of administrative equipment product cost or period cost?
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.
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Is factory equipment product or period cost?
It is period cost
Depreciation a product cost?
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.
Is depreciation of factory plant and equipment a factory overhead cost?
YES
Is depreciation of administrative equipment product cost or period cost?
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.
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Is factory equipment product or period cost?
It is period cost
Depreciation a product cost?
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.
Is depreciation of factory buildings classified as a period cost or product cost?
If factory building is used in production of units of product then it will be added to product cost as it is part of product to manufacture.
Is depreciation on manufacturing equipment a variable cost?
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Is depreciation on factory machinery fixed cost?
Yes
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.
Is depreciation of delivery truck a period cost?
Yes depreciation of delivery truck is period cost because it is not product cost as it is not require to make the units of product.
Is depreciation on equipment fixed or variable?
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.
Is depreciation on a machine a period cost or product cost?
product cost
