Is the cost of land, buildings, and machinery a fixed cost?
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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how do we record monthly depreciation and what entry do we pass at the end of the year.
-Is accumulated Depreciation cloud be under liability
-What is provision for depreciation and why it is under liability account
Please, brief me in detail
Thanks for your concern. Hope to hearing you soon.
would like to know whether
all Direct costs are fixed cost?? and
all Indirect costs are variable
can any1 let me know along with an example