Repairs to office equipment are period costs.
That is, the cost of the repairs to office equipment will be reported as a selling, general and administrative (SG&A) expense in the period in which the repairs take place.
Repairs to factory equipment are not period costs.
Is office supplies used a period cost?
The difference between product costs and period costs. Examples of product costs are direct materials, direct labor, and allocated factory overhead. Examples of period costs are general and administrative expenses, such as rent, office depreciation, office supplies, and utilities.
Are repairs to office equipment an expense?
Repairing and maintaining office equipment is an immediate expense. This is true even if the repair cost is a very large amount. If a large expenditure is made to improve office equipment, that cost would be recorded as an asset and then depreciated over the remaining life of the equipment.
What is repair and maintenance cost?
The costs incurred to bring an asset back to an earlier condition or to keep the asset operating at its present condition (as opposed to improving the asset). For example, if a company truck is damaged, the cost to repair the damage is immediately debited to repairs and maintenance expense.
Is repair and maintenance an operating expense?
In a real estate context, operating expenses include costs associated with the operation and maintenance of an income-producing property. Operating expenses include: accounting expenses. maintenance and repairs, such as snow removal, trash removal, janitorial service, pest control, and lawn care.