26 October 2016
In receivables management, while calculating invetsment in receivables we take total cost as a bse (variable cost + fixed cost) in dat fixed cost should we consider depreciation aslo? or we shall exclude depreciation and then calculate interset lost on investment in Drs? which argument is valid :- 1) Depre should be excluded bcz its a non cahs expenditure OR 2) Derpe is nothing but systematic allocation of fixed asset expenditure...so it should be inculded Plz guide
01 November 2016
I think your second point is valid on basis that depreciation should be included in cost which is being part of fixed cost in order to arrive at reasonable accuracy.
CAclubindia
