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Depreciation, What type of cost? Direct cost or Indirect cost?
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Answer / prashanth
Depreciation is Direct expenses in Factory account where it
is calculated on factory plant and machinery while if plant
and machinery used in office it is indirect expenses/
In calcualting the cost of asset direct expenses are those
which include purchase price and installation cost and
indirect expenses are those which during trial run they are
trial run exp.
| Is This Answer Correct ? | 11 Yes | 6 No |
Answer / marisetti rama durga kumar
depreciation is a indirect cost.those expenses are directly
partispation in production (i.e direct rawmeterial,direct
laboue etc)is called DIRECT COST.
those expenses are indirectly partispated in production is
called INDIRECT COST. (i.e room rent,)
DIPRECIATION IS NOT DIRECTLY PARTISPATE IN PRODUCTION.SO
DEPRECIATION IS INDIRECT COST
| Is This Answer Correct ? | 6 Yes | 2 No |
Answer / priya
It depends whether Depriciation is a direct cost or not.
In factories, Depriciatin of Plant & Machinery etc. is a
direct cost and Depriciation of office furniture (Office &
Administraton Expense) is an indirect cost.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / rajiv
Depreciation is inindirect ccost as iit iis indirectnot directly proportionate to pproduction,and that's why not iincluded in trading aaccount and charged to profit aand loss.
On tthe same ttime ffactory rrent iis also nnot varies iin accordance wwith production tthan wwhy iit is charged to trading account.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / natraj
Depreciation is an Indirect Cost, Because in Production
they are not using it for production. it is just a
decreasing value of Asset..
| Is This Answer Correct ? | 3 Yes | 3 No |
Answer / muhammad irfan
depreciation is indirect cost because it is related to the
prodution directly but it is the result of using assset to
production
| Is This Answer Correct ? | 3 Yes | 3 No |
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EXPAND___________LOA
You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
Audit 
