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why is depreciation included in cost of sales, distribution expenses and administrative expenses?
thank you
Please don’t post links on here (and the link has not appeared anyway 🙂 )
However the reason will depend on what the assets are that are being depreciated.
If it is depreciation of assets on the factory then it will appear under cost of sales; if it is depreciation of delivery vans then it will appear under distribution expenses; if it depreciation of office equipment then it will appear under administrative expenses.
I do explain this in my free lectures!
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