Some people refer to land, buildings, and machinery as fixed assets. They are also referred to as plant assets, or as property, plant, and equipment.

The depreciation expense on the buildings and machinery is often viewed as a fixed cost or fixed expense. Hence, in the calculation of the break-even point, the annual depreciation expense on the fixed assets other than land is part of the fixed costs or fixed expenses. There is no depreciation of land.

Learn more about Depreciation and Break-even Point.

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