Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines. (Check all that apply.)

Question

Joe Gross

Business

26 January, 06:07

Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines. (Check all that apply.)

+3

Answers (1)

Know the Answer?

Shawn Dickson · Answer 1

Answer: Fixed Indirect costs.

Explanation:

Depreciation cost is the amount of a fixed asset that has been charged to expense through a periodic depreciation charge. Depreciation can either be a direct cost which is one that varies in concert with changes in a related activity while

an indirect cost is one that is not directly associated with an activity.

The determination of depreciation as a direct or indirect cost depends upon what it is associated with. For example carpet cleaning is an Indirect costs because it's precise benefits to a specific project is difficult or impossible to trace Also, since depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset then cost of the depreciation on the carpet cleaning is a Fixed Indirect Cost.