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Is Depreciation regarded as a Direct Cost?

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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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topic Practical Direct Costing Example
👀Is Depreciation regarded as a Direct Cost?
topic Variable Costing Definition
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More on Variable Costing:
Summary
Discussion Topics
topic Practical Direct Costing Example
👀Is Depreciation regarded as a Direct Cost?
topic Variable Costing Definition
🔥 When to Use Direct Costing and When Not
Special Interest Group

SIG Leader

Do you know a lot about Variable Costing? Become our SIG Leader

Knowledge Center

Variable Costing
Knowledge Center



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