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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's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
YES
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.
period 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.
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
YES
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.
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.
Net National product
It is period cost
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.
product cost
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Yes