It is considered as fixed overhead cost because it doesn't dependant on level of production
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
According to my text book, depreciation is a Fixed cost
fixed and variable
Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.
Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.
It is the schadule to show how fixed assets will depreciate in their useful life and show all information according to useful life the depreciation expense charge to income statement and to dispose off them in the end.
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Fixed asset depreciation schedule shows the calculation of yearly depreciation expense which is scheduled to be charged to income statement for all fixed assets and the total amount of depreciation applicable to specific income statement of business.
There are three types of depreciation. Fixed Installment, Diminishing balance and Component Depreciation.
If fixed assets are properly maintained, depreciation is unnecessary do you agree.?