Is Depreciation regarded as a Direct Cost?




Variable Costing
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Frans Mandla Motau, South Africa

Is Depreciation regarded as a Direct Cost?

Is depreciation regarded as a part of direct costing, since is related to assets that are part of production?
 
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vidhu
Analyst, India
 

Depreciation is Part of Indirect Costs

Depreciation is a part of indirect costs as it is covered under factory overheads. Moreover it can't be directly identified or attributed to a product.

   

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