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For income statement purposes depreciation is a variable expense if the depreciation method is?
Units-of-production
Which type of depreciation is not based on pasage of time?
Units of production
How do you calculate depreciation using units of production?
To calculate depreciation using the units of production method, you first determine the total estimated production capacity of the asset over its useful life. Then, calculate the depreciation expense per unit by dividing the cost of the asset (minus any salvage value) by the total estimated production units. Finally, multiply the depreciation expense per unit by the actual number of units produced in a given period to determine the depreciation expense for that period. This method aligns the expense with the asset's actual usage.
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.
What is periodic cost?
Periodic cost is that cost which donot related with production of units and it must be incurred no matter production is done or not like depreciation.
For income statement purposes depreciation is a variable expense if the depreciation method is?
Units-of-production
Which type of depreciation is not based on pasage of time?
Units of production
How do you calculate depreciation using units of production?
To calculate depreciation using the units of production method, you first determine the total estimated production capacity of the asset over its useful life. Then, calculate the depreciation expense per unit by dividing the cost of the asset (minus any salvage value) by the total estimated production units. Finally, multiply the depreciation expense per unit by the actual number of units produced in a given period to determine the depreciation expense for that period. This method aligns the expense with the asset's actual usage.
Which of the following methods of computing depreciation is production based?
Which of the following methods of computing depreciation is production based?A. Straight-line.B. Declining-balance.C. Units-of-activity.D. None of these.Ans: C. Units- of- activity
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.
What is periodic cost?
Periodic cost is that cost which donot related with production of units and it must be incurred no matter production is done or not like depreciation.
Advantage and disadvantage of using a meterstick?
the metric system is divisable by units OS ten which makes it simple to convert measurements in meters into other metric units
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.
What is the advantages and disadvantages of piecework system?
Disadvantage: Quality control such as supervision will be needed to check that units are of a minimum standard. Advantage: Workers will be motivated to work harder do to get higher pay, hence producing more units
What are the types of depreciation methods?
In financial accounting there are three types of depreciation methods:Straight-line = (cost-residual value)/useful life. This method is used when the asset generates revenues that are equal (or very close to equal) over its useful life.Diminishing balance = (cost-accumulated depreciation)*depreciation rate. This method is used when the asset's revenues decrease over its useful life.Units of production = (cost-residual value)*units used /total life units. This method is used when an asset generates revenues based on its measurable usage.
Production for five people was as follows 8 units 11 units 6 units 12 units 8 units. What was their average production in units?
Production for five people was as follows: 8 units, 11 units, 6 units, 12 units, 8 units. What was their average production in units?
What are the advantage of using parts of the body as unit of measure?
Advantage: You always have it with you. Disadvantage: No two people have the same size ... ahh ... units, so no two people ... say a buyer and a seller ... can ever agree on how much product to deliver or on what it should cost.
