Hi
R&M is classified as indirect cost. Sometimes it's mentioned as Semi variable or variable cost (which means a direct cost). Even I think all factory repairs and maintenance can be shown as direct cost because
the economic benefit is usual, that is, sales will continue
Even if a new spare like air compressor is replaced during Repairs & Maintenance, that spare is capitalised.
When welding works happen, it is an expense etc.
Why is Repairs and Maintenance given an indirect cost classification when it has broader perspective when all the above example impact per unit cost?
CAclubindia
