Depreciation is direct or indirect cost

Saurabh Toshniwal (ca final) (2363 Points)

12 December 2014  

 Fixed assets are used inside the factory for production & also outside the factory eg in office premises, staff quarters etc. so, whether the depreiation is direct cost or indirect cost or it is both direct as well as indirect cost  In case it both then is it required to segregate both for GP Ratio purpose.