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Is depreciation of factory buildings classified as a period cost or product cost?
Wiki User
∙ 9y ago
If factory building is used in production of units of product then it will be added to product cost as it is part of product to manufacture.
Wiki User
∙ 9y ago
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Is depreciation on office equipment classified as a period cost or product cost?
period cost
Depreciation a product cost?
In the US, the answer depends on what depreciable assets you are talking about.Depreciation on any depreciable asset that is directlyused in the production of goods is part of Manufacturing Overhead, and therefore is a product cost, which is included in the calculation of the value of both inventory and cost of goods sold. So, depreciation on a factory building and factory equipment directly used to manufacture a product are both product costs.Conversely, depreciation on equipment that is NOTdirectly used in production (e.g., depreciation on office computer equipment) is NOT a product cost.
Is factory heating costs classified as a product cost or period cost?
Factory heating cost is overhead cost and part of product cost as if there is no production there is no factory heating requires.
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
Depreciation on delivery truck is product cost?
Depreciation on delivery truck is period cost as it is not necessary for the making of product.
Is depreciation on office equipment classified as a period cost or product cost?
period cost
Depreciation a product cost?
In the US, the answer depends on what depreciable assets you are talking about.Depreciation on any depreciable asset that is directlyused in the production of goods is part of Manufacturing Overhead, and therefore is a product cost, which is included in the calculation of the value of both inventory and cost of goods sold. So, depreciation on a factory building and factory equipment directly used to manufacture a product are both product costs.Conversely, depreciation on equipment that is NOTdirectly used in production (e.g., depreciation on office computer equipment) is NOT a product cost.
Is factory utilities a product or a period cost?
Product cost classified further as a manufacturing overhead
Is factory heating costs classified as a product cost or period cost?
Factory heating cost is overhead cost and part of product cost as if there is no production there is no factory heating requires.
Is depreciation on factory equipment a period cost?
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
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.
Depreciation on delivery truck is product cost?
Depreciation on delivery truck is period cost as it is not necessary for the making of product.
What are the product of operation?
That would depend on the nature of your business. A contract builder's product would be the buildings. A candy factory's products would likely be some type of candy.
Is depreciation on a machine a period cost or product cost?
product cost
Is depreciation of delivery truck a period cost?
Yes depreciation of delivery truck is period cost because it is not product cost as it is not require to make the units of product.
What is special product and factory?
what are the different special product and factory
The is the gross national product minus the?
A and C Net national product/ depreciation net national product/ capital consumption
