Conversion of Depreciation Expenses of Machines in Cost Budget
Time: 2021-07-22
If the machine is used for a long time, it will produce depreciation and depreciation expenses. How is this depreciation expense generally calculated?
The calculation formula of the depreciation cost of the machine:
Annual depreciation expense = (purchase cost-salvage value)/3
Monthly depreciation expense = annual depreciation expense/12
Let’s take a machine with 1.8W and a residual value of 6K as an example
Annual depreciation: (18000-6000)/3=4000 yuan
Monthly depreciation fee: 4000/12=333 yuan
Through calculation, we can conclude that the annual depreciation fee of this machine is 4K yuan, and the monthly depreciation fee is about 333 yuan.