No
Alternate answer:Expenditures that result in a higher capacity or longer economic lifetime of the equipment is considered an asset, and is allocated over the remaining economic lifetime.On the other hand, expenditures for repairs, maintenance, cleaning, etcetera that do not increase the capacity are expensed as incurred. Hence, yes, repairs on office equipment is a period cost.
period cost
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
It is period cost
Depreciation of administrative equipment is period cost because if production is done or not those assets will be depreciated hence cost will be charged as period cost.
if we bought i unit computer the entry is DR - - - - Equipment at cost Cr ------------------------------------------ Cash in Bank
period cost
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
It is period cost
Depreciation of administrative equipment is period cost because if production is done or not those assets will be depreciated hence cost will be charged as period cost.
If equipment is still kept whether production done or not then it is period cost as no matter production done or not it has to be paid.
"Many appliance stores, and furniture stores will allow you to purchase refurbished office equipment for a discounted price. Refurbished office equipment tends to cost a lot less than new equipment."
if we bought i unit computer the entry is DR - - - - Equipment at cost Cr ------------------------------------------ Cash in Bank
Equipment Maintenance Management Programs (EMMP)! Save 10 - 25% on electronic equipment maintenance and repairs.
Supplies for an administrative office would be classified office supplies, which is always treated as a cost of a period. Supplies for a manufacturing company would be classified as a product cost, i.e. wood (supply) in order to make desks (end product).
That depends entirely on the nature of the repairs, and the cost of parts.
You might want to consider buying new equipment. Repairs will just cost you more in the long run.
Each piece of office equipment requires periodic preventative or planned maintenance to avoid failures, corrective maintenance to rectify faulty equipment, and sometimes software updates or consumable replacements over the course of time in order to keep it in working condition. If equipment is broken, employees cannot properly perform their job functions and productivity slows down or even stops. As a result, the equipment must be repaired properly, in a timely and cost effective manner. There are a few options to choose from to ensure this happens. Manufacturers offer maintenance agreements on their equipment to deal with the financial uncertainty associated with equipment maintenance and repair. In exchange for a fixed annual fee, the manufacturer will bear the financial risk and handle the equipment maintenance and repairs. Maintenance agreements cover equipment for a certain time period, which should be clearly identified in the agreement. In the absence of a maintenance agreement, an equipment owner can elect to pay for repairs on a time & materials basis (T&M); this means that the owner pays for parts, labor, and travel on an as-needed basis. However, several closely spaced equipment failures can severely impact a company's cash flow.