To check does depreciation go in cost of sales?

Can not find in the book where it specifically says to do this it can't find anywhere else to put it on the profit and loss statement help aappreciated!

Thank you

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    Yes

    When you depreciate assets such as production machinery, the depeciation expense is included within cost of sales.
    Vehicle depreciation for vehicles used to distribute the products to customers would be a distribution cost.
    Administrative costs can also include depreciation of appropriate assets.

    So look at the assets which are being depreciated and charge the cost to the appropriate general heading.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • topcat
    topcat Registered Posts: 452
    SandyHood wrote: »
    Yes

    When you depreciate assets such as production machinery, the depeciation expense is included within cost of sales.
    Vehicle depreciation for vehicles used to distribute the products to customers would be a distribution cost.
    Administrative costs can also include depreciation of appropriate assets.

    So look at the assets which are being depreciated and charge the cost to the appropriate general heading.

    brilliant so very helpful :thumbup::thumbup:

    Thank you very very much :001_smile:
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