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Depreciation of manufacturing equipment is fixed cost because that cost will incurred no matter how much units produced.
Wiki User
∙ 9y ago
Wiki User
∙ 8y agoYes, it is.
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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 Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
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 straight-line depreciation on equipment fixed or variable?
It is considered as fixed overhead cost because it doesn't dependant on level of production
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 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 the depriciation cost is variable cost?
yes..depreciation cost is the variable cost..
Is Manufacturing cost is overhead or variable?
Manufacturing cost is variable cost.
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 straight-line depreciation on equipment fixed or variable?
It is considered as fixed overhead cost because it doesn't dependant on level of production
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 fire a selling cost manufacturing cost direct manufacturing cost indirect administraitve cost fixed cost or variable cost?
Is fire a selling cost, direct manufacturing cost, indirect manufacturing cost, administrative cost, foxed cost or variable cost.
Is depreciation of administrative equipment product cost or period 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 depreciation on office equipment classified as a period cost or product cost?
period 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 direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
Is depreciation direct 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.
