Accounting MascotAccounting Q&A

Is depreciation included in operating expenses?
submitted by Viola Solo

ben

Usually, depreciation is part of the operating expenses because it shows how much of the equipment's value is used up during operation. So, when companies list operating expenses, depreciation is often included there.

Steve Dreyer

Depreciation is included in operating expenses because it's the way companies spread out the cost of their equipment over time, and it's part of running the business.

jason

Yeah, depreciation is in operating expenses. It's like the cost of things wearing out, so it's just part of running the business day to day.

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