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Depreciation, What type of cost? Direct cost or Indirect cost?
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Answer / prakash jha
Depreciation is Direct Cost in manufacturing concern when it
has been charged on the machinery which used for production
as it is diectly related to production exp but in the case
of non-manufacturing concern it will treated as indirect cost
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / rinku
Depreciation is a indirect asset.Every year the value of asset may decrease due to its excess usage,exploser to sun light etc .calculation of that change in asset value is called as depreciation .It is used to know the value of asset and profit or loss that was earned by sale of the asset.
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / rama durga kumar
depreciation is a not direct cost.because of those expenses
are directly particiation (i.e direct rawmeterial,direct
wages etc)in production.
| Is This Answer Correct ? | 4 Yes | 5 No |
Answer / imtiyaz
i think depreciation is a direct cost as it is directly
related with the production. but analysts should describe
how it is treated as an indirect expense.
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / muhammad ahmad
depriciation is not an Direct or indirect Expense. . .b coz
it is not directly traceable to any cost objective(item
whos cost can seperately b calculated) so this is a Factory
overhead(manufacturing overhead). . . For more detail visit
AccountingCoach.com
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / venu
indirect cost. why becoz the company loosing some amout as
depreciation indirectly.
| Is This Answer Correct ? | 6 Yes | 10 No |
Answer / deepak jha
Depreciation is not a cost. It is allocation of whole cost
of an asset over its useful life.we charge the amount of
Depreciation in the p/L account to accumulate amount for
the future(i.e when the useful life of an asset is over)
replacement of asset.
| Is This Answer Correct ? | 7 Yes | 14 No |
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