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It can be fixed or it can be variable depending upon the method of depreciation adopted by the company.
When it is calculated for a machine upon the no of units produced or no of machine hours worked than It is totally variable. But if it is calculated upon the straight line method regardless of any production than it is fixed.
SO it depend totally upon the method adopted by the company
It depends on the asset you depreciate and the method of depreciation. If the amount is fixed annually then the depreciation is fixed, and if the amount is variable then the depreciation is variable.
Depreciation standards are used by standards of the company. It can be variable or Fixed. But with the nature of most business, we should adopt the depreciation to be fixed.
Depreciation depends on the quantity produce. In this context it is a variable cost.
Deprecition should be considered as a fixed cost as the value of the provision is known before hand as it is calculated year on year according to a defined step through out the asset usefull life.
I think in any case it is a fixed cost because we are calculating depreciation on daily, monthly or annual bases, but we will never calculate it based on the quantity of produced goods. It means that if we are using it for producing goods we are depreciating it and it will be the part of cost but the cost of monthly depreciation will not depend on the quantity of production. That is why it will be fixed cost anyway.
its depend on orgnisation policy/ usage of methods according too gaap /ias some kind is fixed and some kind is variable.
The two methods are correct ,depending about the depreciation of each asset and differs from company to another.
depreciation is Fixed cost but Treatment can go either ways.
Depreciation is fixed cost
Variable cost is a cost which fluctuates with Turnover/Sales/production but depreciation doesn't.
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