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Is depreciation come under factory overhead?
Yes, depreciation is considered a part of factory overhead. It reflects the allocation of the cost of fixed assets, such as machinery and equipment, used in the production process over their useful lives. This expense is included in the total manufacturing costs, which helps in calculating the overall cost of goods produced. Thus, it plays a significant role in determining the profitability of manufacturing operations.
What are the arguments in favor of treating fixed manufacturing overhead cost as period costs?
Fixed manufacturing cost is treated as period cost because it has to be incurred no matter there is any production or not like machinery depreciation or building depreciation etc these kinds of costs cannot be eleminate in short run.
Is depreciation fixed cost?
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
Is depreciation and amortization a fixed cost?
no
Is depreciation come under factory overhead?
Yes, depreciation is considered a part of factory overhead. It reflects the allocation of the cost of fixed assets, such as machinery and equipment, used in the production process over their useful lives. This expense is included in the total manufacturing costs, which helps in calculating the overall cost of goods produced. Thus, it plays a significant role in determining the profitability of manufacturing operations.
What are the arguments in favor of treating fixed manufacturing overhead cost as period costs?
Fixed manufacturing cost is treated as period cost because it has to be incurred no matter there is any production or not like machinery depreciation or building depreciation etc these kinds of costs cannot be eleminate in short run.
Is depreciation fixed cost?
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
Is depreciation and amortization a fixed cost?
no
Can you refer depreciation as fixed cost?
no
Is it depreciation variable cost or fixed cost?
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
Is depreciation of factory plant and equipment a factory overhead cost?
YES
Is depreciation a fixed 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.
Is depreciation of sales facilities a fixed or variable expense when calculating contribution margin?
According to my text book, depreciation is a Fixed cost
Is depriciation a fixed cost?
Yes depreciation is a fixed cost of business which is an allocation of fixed asset cost over period of asset life.
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.
