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Yes depreciation is a fixed cost of business which is an allocation of fixed asset cost over period of asset life.
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∙ 9y ago
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What is depriciation?
depriciation: wear or tear of an asset or estimated life used of an asset
Does accrued depriciation go in asset non current where you subtract?
Accumulated Depreciation is a contra-account, meaning it is shown as a negative, in the Fixed Asset section of the Balance Sheet.
How depriciation and tax are related?
Depreciation is a method of allocating the cost of a tangible asset over its useful life. Tax is a financial charge.
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Is capital a fixed cost?
capital is a fixed cost
What is the benefit of depriciation exp?
Reduced the velue of fixed asset
Is the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
Is the depriciation cost is direct cost?
Depreciation is an indirect cost as there is no separate identification in product cost that which cost is depreciation as deprecation is a overhead cost that’s why it is indirect cost.
What is depriciation?
depriciation: wear or tear of an asset or estimated life used of an asset
Does accrued depriciation go in asset non current where you subtract?
Accumulated Depreciation is a contra-account, meaning it is shown as a negative, in the Fixed Asset section of the Balance Sheet.
How depriciation and tax are related?
Depreciation is a method of allocating the cost of a tangible asset over its useful life. Tax is a financial charge.
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Is capital a fixed cost?
capital is a fixed cost
Fixed cost variable cost equals?
Fixed cost and variable cost is equal to total cost as per following formula: Total Cost = Fixed Cost + Variable Cost
Select a cost in your industry that is a fixed cost and why is it considered to be a fixed cost?
rental
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Is clerical salaries a fixed cost or variable cost?
its a fixed cost
