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Depreciation is called a notional cost because it cannot be measured in real terms.
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The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
The systematic allocation of land's cost to expense is called depreciation?
true
Why accumulated depreciation is credited explain with example?
Accumulated depreciation is contra for related assets shows in balance sheet to show the reduction in actual cost of asset Example: if 1 asset purchased for 100 for 10 years then per year depreciation is 10 with straight line depreciation so after ten years actual cost will be nill while accumulated depreciation will be 100.
What is it called when matching the cost of an asset with the revenue it is expected to produced?
Depreciation or Amortization.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
What is a notional cost?
yes, its implied cost.
What is notional profit?
Notional Profit = Value of work certified-(cost of work to date-cost of work uncertified)
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
The systematic allocation of land's cost to expense is called depreciation?
true
Why accumulated depreciation is credited explain with example?
Accumulated depreciation is contra for related assets shows in balance sheet to show the reduction in actual cost of asset Example: if 1 asset purchased for 100 for 10 years then per year depreciation is 10 with straight line depreciation so after ten years actual cost will be nill while accumulated depreciation will be 100.
What is it called when matching the cost of an asset with the revenue it is expected to produced?
Depreciation or Amortization.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
Is depreciation a product dost?
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.
The process of allocating the cost of plant assets to expense over their useful lives is called-?
Depreciation
Is depreciation an overhead cost?
no
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.
How does depreciation affect the cost of capital?
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
