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It is considered as fixed overhead cost because it doesn't dependant on level of production

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11y ago

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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.


Is depreciation on manufacturing equipment a variable cost?

Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.


Is depreciation on office equipment classified as a variable or fixed 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.


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 sales facilities a fixed or variable expense when calculating contribution margin?

According to my text book, depreciation is a Fixed cost


Is buiding depretiation 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.


Is maintenance on production equipment a fixed variable or mixed cost?

fixed and variable


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.


What is a fixed asset equipment depreciation schedule?

It is the schadule to show how fixed assets will depreciate in their useful life and show all information according to useful life the depreciation expense charge to income statement and to dispose off them in the end.


Is depreciation on vehicle fixed cost or variable cost?

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.


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.


Fixed asset depreciation schedule?

Fixed asset depreciation schedule shows the calculation of yearly depreciation expense which is scheduled to be charged to income statement for all fixed assets and the total amount of depreciation applicable to specific income statement of business.