No. Depreciation would be considered an uncontrollable cost because it is fixed
no
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
Depreciation is called a notional cost because it cannot be measured in real terms.
HIstorical cost based depreciation tends to increase profits when there is inflation
Depreciation is an invisible, non-cash cost and it is irrelevant when calculating the cash flow of the company which is the true indicator of whether the company is making a profit or not. Depreciation is also irrelevant because it is not truly realized until the asset is resold or scrapped at the end of its life. Recording it every year is consistent with the theory of conservatism when writing off costs. Depriciation is also irrelevant for the existing assets becoz it is fixed and fixed costs are always irrelevant unless they are incremental
No. Depreciation would be considered an uncontrollable cost because it is fixed
Depreciation is a period cost and not a product cost as depreciation is still charged even if there is no production or sale of goods.
Depreciation is an indirect cost as there is no separate identification in product cost that which cost is depreciation as deprecation is a overhead cost that’s why it is indirect cost.
no
Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital: http://en.wikipedia.org/wiki/Depreciation
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
Depreciation is called a notional cost because it cannot be measured in real terms.
HIstorical cost based depreciation tends to increase profits when there is inflation
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.
product cost