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Is depreciation on office equipment classified as a period cost or product cost?
Wiki User
∙ 15y ago
period cost
Wiki User
∙ 15y ago
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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.
What type of expense are office salaries depreciation of office equipment and office supplies?
Administrative expenses
The office equipment account is classified as?
The office equipment account is classified as an asset. Office equipment is an account that is amortized each year to show a devaluation for tax purposes.
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
What can go to Expense Account Choose ccounts payable interest revenue accounts receivable merchandise inventory accumulated depr - building mortgage payable accumulated depr - equipment office?
Accumulated Depreciation Building and Accumulated Depreciation Equipment office
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.
What type of expense are office salaries depreciation of office equipment and office supplies?
Administrative expenses
The office equipment account is classified as?
The office equipment account is classified as an asset. Office equipment is an account that is amortized each year to show a devaluation for tax purposes.
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
What can go to Expense Account Choose ccounts payable interest revenue accounts receivable merchandise inventory accumulated depr - building mortgage payable accumulated depr - equipment office?
Accumulated Depreciation Building and Accumulated Depreciation Equipment office
Is supplies for administrative office classified as period cost of product cost?
Supplies for an administrative office would be classified office supplies, which is always treated as a cost of a period. Supplies for a manufacturing company would be classified as a product cost, i.e. wood (supply) in order to make desks (end product).
Is depreciation of sales office equipment a selling expense?
The Sales Office is in charge of the selling of valuables of an entity. Thus, all expenses related to this office is debited to selling expenses. Furthermore, depreciation is a form of expense, and deserves a different account, but since it is related to the sales office, it is debited to selling expenses. Yes, it is a selling expense.
What services does Office Direct provide?
Office Direct is an equipment dealer for office equipment. Their product line primarily offers a variety of dictation equipment. They also offer telephones and software.
Is office equipment an asset?
Yes, anything of value the company owns is an Asset. Office Equipment is generally classified as a Long-Term Asset or more commonly PP&E (Property, Plant, & Equipment).
Where are places someone can buy office equipment?
Office supply stores are popular places to buy office equipment. Stores like Staples, Office Max and Office Pro specialize in this type of product. In addition, many big box retailers like Walmart and Target offer types of office equipment ranging from file cabinets to desks to printers.
What type of product does Workspaces sell?
Workspaces sell office furniture and equipment for both the home and office. These include desks, cabinets, filing cabinets, office chairs and workstations.
What is kind of operating expense is depreciation selling expense or general administrative expense?
Examples of operating expense ==> depreciation expense of a machine, impairment of goodwill Example of selling expense ==> advertising Example of general administrative expense ==> office expense
