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Bringing Deeper Meaning to Business and
the Business of Accounting

Classifying your Expenses Correctly?
Repair-Regs-Flowchart5.jpg
This flowchart can help..

 

The final repair regulations have resulted in significant changes to how you classify common supplies, repairs, and maintenance
expenses. Due to these changes, this flowchart helps with classification of operating expenses as part of manufacturing accounting.

Use this flowchart as a guide to:

  • See if your expenses meet exceptions for capitalization
  • See if your expenses are considered "improvements"
  • Decide how to classify repair and maintenance costs