Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
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.
Manufacturing cost is variable cost.
Depreciation on office equipment is classified as a fixed cost. Fixed costs are expenses that do not change with the level of production or sales, and depreciation remains constant over time regardless of how much the office equipment is used. This makes it a predictable expense that businesses incur regardless of their activity level.
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
It is considered as fixed overhead cost because it doesn't dependant on level of production
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.
yes..depreciation cost is the variable cost..
Manufacturing cost is variable cost.
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
It is considered as fixed overhead cost because it doesn't dependant on level of production
Yes, depreciation on factory equipment is considered a product cost. It is included in the manufacturing overhead, which is allocated to the cost of goods produced. This treatment aligns with the matching principle in accounting, where costs are matched with the revenues generated from the products. Thus, it contributes to determining the total cost of production.
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.
Depreciation of administrative equipment is period cost because if production is done or not those assets will be depreciated hence cost will be charged as period cost.
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
period cost
Depreciation is always part of fixed cost and that's why building deprecation is also part of fixed cost and not a variable cost.
Only depreciation for all those fixed assets which directly involve in manufacturing of production volume is part of direct cost while all other depreciation is not part of direct cost and included in indirect cost classification.