0
A calendar month is the smallest unit of time used to calculate depreciation.
A plant asset may be placed in service at a date other than the first day of a fiscal period. In such cases, depreciation expense is calculated to the nearest first of a month. To calculate depreciation expense for part of a year, the annual depreciation expense is divided by 12 to determine depreciation expense for a month. The monthly depreciation is then multiplied by the number of months the plant asset was used that year.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Can one take bonus depreciation on assets in rental unit?
yes
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.
A project has earnings before interest and taxes of 6500 fixed costs of 40000 a selling price of 12 a unit and a sales quantity of 10000 units Depreciation is 8500 What is the variable cost per unit?
Sales (10000 * 12) = 120000 Less: Fixed Cost = 40000 Less: Depreciation = 8500 Less: Variable Cost = 65000 (Balancing Figure) ---- PBIT = 6500 Variable Cost per unit = 65000/10000 = 6.5 per unit
What is included in the cost basis of a long lived asset?
Depreciation is the process of reducing the historical cost of an asset by an annual amount relating to the amount of asset usage. [ Most assets are recorded at historical costs by accounting departments; based on the type of asset, certain methods must be used to reduce the value of the asset each year. Depreciation affects the company financial statements, moving the depreciation amount from the asset value on the balance sheet to the depreciation expense on the income statement. GAAP Methods Several methods of depreciation are used to record the depreciation expense on the accounting books. The most popular methods include: Straight-Line: This is the simplest depreciation method; it is calculated by subtracting the asset salvage value from the asset's historical cost, then dividing the remaining amount by the useful years of the asset. This creates a constant amount for companies to depreciate each year. Declining Balance: The declining balance method is used for assets with shorter life spans for a company. This allows companies to deduct higher depreciation amounts early in the asset life and lower amounts as the asset is phased out of the company. Companies will usually determine what percentage of the asset will be used each year and multiply it by the asset value to determine annual depreciation. Units of Production: Manufacturing companies may use this method for assets used for production purposes only. It is calculated by subtracting the salvage value from the historical asset cost; this amount is then divided by the total unit production of the machine to get a per-unit depreciation amount. Each month, the units produced are multiplied by the per-unit depreciation amount to calculate the expense. Tax Method When calculating depreciation for U.S. tax purposes, all assets entered into service by a company after 1986 must use the Modified Accelerated Cost Recovery System (MACRS). The Internal Revenue Service (IRS) provides asset classes for companies to determine the useful life and asset salvage value for tax purposes.
Why it is necessary to calculate equivalent units of production in a process costing environment?
Because unit costs are computed by departments or processes at fixed time intervals.
This is the smallest unit in the entire univers?
In physics, the Planck time (tP) is the unit of time in the system of natural units. Theoretically, this is the smallest time measurement that will ever be possible.
What is the smallest unit of geologic time?
It is an age. The second smallest is a period.
What is the smallest unit of time on the geologic time scale?
The smallest unit of geologic time is an age, followed by epoch, period, era, eon, and super eon.
Is an eon the smallest most specific time unit?
no
What is the smallest biological unit that can evolve over time?
A virus.
Is second smallest unit of time?
No the second is broken down into smaller intervals of time.
Smallest unit of measure?
There is no smallest measurement since you cannot compare the size of a second (time) with a gram (mass). Furthermore, by suitable use of prefices, you can always find a smaller unit even if it has no real life application.
What is a compound's smallest unit usually called?
If it is a molecular compound, the smallest unit is called a molecule. If it is an ionic compound, the smallest unit is called a formula unit.
What is the smallest unit that maintain the properties of an element?
This smallest unit is the atom.
What is the smallest unit of an organization?
A cell is the smallest unit of an organism
What is the smallest unit of molecular compound?
Smallest unit of a compound is a molecule.
What is a compounds smallest unit?
A molecule is a compounds smallest unit
