Is depreciation an operating expense?

[niyati]

I’m trying to understand the role of depreciation in financial statements. Is it classified as an operating expense, and how does it affect a company’s income statement?

 

[smith]

Yes, when the asset being depreciated is utilized in the company's primary business operations, depreciation is typically seen as an operating expense. Depreciation of equipment utilized in a manufacturing process, for instance, is usually categorized as an operational expense.