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Depreciation, What type of cost? Direct cost or Indirect cost?
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Answer Posted / 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.
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