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What else can I help you with?
Is depreciation a product dost?
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.
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.
What factors must be considered in determining the period of depreciation charged?
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
How do you account for equipment stolen from business?
Loss by theft will be charged to profit and loss account for that specific fiscal year with the remaining amount after accumulated depreciation till that time period.
How does depreciation expense on the income statement relate to accumulated depreciation on the balance sheet?
Depreciation expense in income statment is the entry to reduce the fixed asset and charge to income statement of fiscal year in which asset is use to earn revenue while accumulated depreciation in balance sheet records that how much depreciation charged from start to till date.
Is Depreciation can be calculated on capital expenditure?
Depreciation on Capital Expenditure is nothing but Depreciation on fixed assets. Cash Flow statement shows the Capex incurred during the particular time period,i.e. for Quarter or fiscal year. A CAPEX is an amount spent to acquire or improve a long term asset such as plant,equipment or buildings. Usually the cost is recorded in an account classified as Property,plant and equipment.The cost (Except for the cost of LAND) will then be charged to depreciation expense over the useful life of the asset.
A method that charges the same amount of expense over each period of the asset's useful life is called?
straight line depreciation
Why depreciation is not charged on livestock?
Please note that in order to charge depreciation, we must know the expected life of the subject so as to distribute the cost of the stock over that period. However, in case of livestock, the life can't be ascertained i.e. the very basis of calculation ofdepreciation is not available and this must be one of the reasons for not charging depreciation on livestock.
What is an idle asset?
Idle asset is that asset which is not utilized in the fiscal year to earn revenue of business. Depreciation of idle asset is not charged for that specific period under which it remained idle.
Make a sentence with a word depreciation?
The accountant calculated the depreciation of the computer over a period of five years.
Is depreciation of delivery truck a period cost?
Yes depreciation of delivery truck is period cost because it is not product cost as it is not require to make the units of product.
Is depreciation of delivery truck period cost?
yes
