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Yes, depreciation on the factory building is considered a product cost. It is part of the manufacturing overhead, which includes all costs associated with the production process that are not directly tied to specific products. As such, depreciation is allocated to the cost of goods manufactured and ultimately included in the inventory valuation until the products are sold.
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Is depreciation of factory buildings classified as a period cost or product cost?
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.
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 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 on factory equipment a product cost?
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.
Is depreciation on a machine a period cost or product cost?
product cost
Is depreciation of factory buildings classified as a period cost or product cost?
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.
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 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.
Is depreciation on a machine a period cost or product cost?
product cost
Is depreciation of factory plant and equipment a factory overhead cost?
YES
Is depreciation on factory machinery fixed cost?
Yes
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.
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
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.
Is factory supplies a product cost or period cost?
Product cost
