Depreciation in different sectors is calculated separately, the enterprise basic production of fixed assets used, such as plant, workshop, equipment, etc. Its depreciation is charged to the cost of manufacturing costs; management of fixed assets used by the department, its depreciation is charged to administrative expenses; sales department of fixed assets, its depreciation is charged to the cost of goods sold; research and development of intangible assets used in fixed assets, its depreciation is charged to the cost of research and development.
Since companies don't disclose depreciation expenses separately from costs, we can make an observation from industry data. Overall, 2/3 of depreciation and amortization are charged to cost.
The proportion of depreciation expense in the cost of main business is not high, generally not more than 5%. However, we should pay attention to the short-term impact on profits after the large-scale construction in progress of pharmaceutical companies into fixed assets put into use.