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depreciation is an indirect cost as we dont know exactly how much of it goes towards producing 1 cost unit and the total cost of depreciation is not pertained to only one unit rather many units. But incase we know exactly how much time it takes for a machine to produce a cost unit , in that case can we say it a direct cost or it will still be an indirect cost. Explain plz.
Also we dont exactly cant measure the depreciation cost for each machine hours so even thou we know how much time it takes for a cost unit of that machine but since we cant directly measure the cost of that much time , so it will still remain indirect cost. Is it right sir?
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