Depreciation cost to be included in cost of a product?

Dear Expert,

Whether depreciation is to be added to cost of a product, please explain me along with justification.

 

Thanks in Advance

Raj

Replies (2)
Dear Raj,
I assume you are asking in context to valuation of a product cost. In order to know the cost incurred by us for the product, we need to consider both direct and indirect costs. Direct costs are those which are directly attributable to the manufacturing of the product. But while preparing the product, we have also incurred other costs without which the product cannot be produced. eg. Factory if running in a rented place, then without the payment of rent, you won't be able to produce the product. Similarly, without using the machines, you cannot produce the product. These machines undergo wear and tear while being used. Hence in order to calculate the correct value of the product, the wear and tear cost incurred by the machine for the manufacturing of the product is to be considered I.E. Deprecation.

Dear Sir,

 

Thank you for your valuable comments.

 

Regards

Raj

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details