Depreciation expense can be allocated to Administrative Expense or Selling & Marketing Expense or even to Cost Of Goods Sold. The amount of allocation and how that is done is specific to the type of business or industry.
Administrative expenses
An expense.
yes, under operating expenses
Neither. Depreciation is a non-cash expense.
Debit is to depreciation 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
selling expense
Administrative expenses
Depreciation expense is neither an asset or liability. It is an expense.
is depreciation expense a non-cash expense
administrative expenses;
An expense.
Using accumulated depreciation and depreciation expense is a way that businesses can realize the true value of assets. A piece of equipment, for example, is devalued every year by the process of amortizing the asset. This in turn is recorded as depreciation and depreciation expense.
yes, under operating expenses
Neither. Depreciation is a non-cash expense.
Debit is to depreciation expense.
It is a selling expense to be accounted for on the Income Statement under Selling Expenses.