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The depreciation on the trucks used to deliver products to customers is a period cost. The depreciation on delivery trucks will be reported as an expense on the income statement in the period in which it occurs. It might be reported as part of Selling Expenses or as part of Selling, General and Administrative (SG&A) Expenses. The depreciation on the trucks used to transport materials or work-in-process between the facilities of a manufacturer is a component of manufacturing overhead. In other words, the depreciation on trucks used in the manufacturing process is assigned to the goods produced rather than being expensed directly.
If these trucks are delivering materials for production then its depreciation is a manufacturing overhead and treated as a product cost if we are using absorption costing and a period cost if we are using variable costing, but if the trucks deliver something not related to production then its depreciation is a period cost.
Sales trucks' depreciation is a period cost. Purchasing trucks' depreciation is a manufacturing overhead.
Well, depreciation of a delivery truck is a period cost and it does accounting in Statement of Financial Performance under the umbrella of Selling & Distribution Expense but when the truck is used to performing goods in house at factory level then depreciation will be accounting as a factory overhead to consider the value added in Work- In- Process.
The depreciation of delivery trucks is a period cost.
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