Hi,
that would be an accounting view (investment going to the BS and then depreciating in the IS).
But when you look at NPVs you just look at cash outlays, e.g. investment in Year0 and fixed + variable cost in year 1,2,3 ...
Verabrede dich zum Casen über das Meeting-Board, nimm an Diskussionen in unserem Consulting Q&A teil und finde gleichgesinnte Interview-Partner:innen, um dich auszutauschen und gemeinsam zu üben!
Zurück zur Übersicht
24
Why aren't investment costs included in fixed cost in a form of amortization or depreciation costs
2
2,8k
Schreibe die erste Antwort!
Bisher hat niemand auf diese Frage reagiert.
Hi there,
I guess that"s somewhat a matter of accounting definitions. As a general rule costs get recorded in the P&L and Investments in the balance sheet. Investments can be depreciated over a number of years to recognise their loss of value with the time. Costs are directly recognised as incurred in the P&L.
I hope this helps.
Best, Fernando
