Do you think that depreciation of production should be included in a cash budget ? Why ?

Dear Nadjib,

No, depreciation shouldn't be included in Cash budget (cash flow statment or planning) depreciation being non-cash expense.

However, depreciation, if useful life is properly estimated, could be used as tool to project Cap-Ex Budget and therefore your Cash Flow planning/ budget.

Hope this helped.

Best regards,

No,

Depreciation is a non cash item, Flow of fund or cash only appears in a cashflow statement

No.

Depreciation is a non cash charge. Only cash payments and receipts appear on cash budget.

Depreciation is  P&L Account transaction it should not be included in the cash flow

NO. 

A cash budget involves Cash inflows and Cash outflows. Depreciation in production involves quantitative reduction in the production activity which is a part of Production budget and not the cash budget.