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Repair/rework of stock - COS or operating expense?

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Hello, what is the correct way to account for repair cost to stock items? should such costs be included in the total cost of sale of the product or recorded as an operating expense? My thinking is that we are unable to use the components until repair is done, so the cost of repair should be included as part of the cost of sale. thank you

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By paulhammett
11th Oct 2021 17:38

I agree with you but, in reality, nobody will care.

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By tom123
13th Oct 2021 08:45

Be consistent - would be my reply.

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