Investment in debtors

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nitin (Querist)
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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

Vinod Oza

Vinod Oza (Expert)
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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.

nitin

nitin (Querist)
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04 November 2016 thank you for ur reply

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