Is depreciation of fixed cost and variable cost? give reason. – InterviewSolution

1.

Is depreciation of fixed cost and variable cost? give reason.

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Answer:

Depreciation is a fixed cost, because it recurs in the same AMOUNT PER period THROUGHOUT the useful LIFE of an asset. Depreciation cannot be considered a variable cost, SINCE it does not vary with activity volume. However, there is an exception...

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