Depreciation on a vehicle is generally considered a fixed cost. This is because it does not fluctuate with the level of production or sales; instead, it remains relatively constant over time, reflecting the vehicle's loss of value. Regardless of how much the vehicle is used, the depreciation expense will still be incurred.
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable 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.
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
It is considered as fixed overhead cost because it doesn't dependant on level of production
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable 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.
According to my text book, depreciation is a Fixed cost
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.
Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
It is considered as fixed overhead cost because it doesn't dependant on level of production
Depreciation is typically considered a fixed cost because it does not change with the level of production or sales. It represents the systematic allocation of the cost of tangible assets over their useful lives, remaining constant regardless of business activity within a given period. However, certain methods of depreciation, like units of production, may introduce variability based on usage, but generally, standard depreciation is fixed.
yes..depreciation cost is the 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.
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
Purchasing of motor vehicle is example of fixed cost while using fuel for running those motor vehicles is a variable cost.
No. Depreciation would be considered an uncontrollable cost because it is fixed