Fix expense in the Profit Maintenance Agreement

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How to Fix expense in the Profit Maintenance Agreement

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mm now so okay guys so welcome to the second portion of our basic HVAC pricing today or last day before yesterday on our first recording we talked about equipment replacement how do we how do we calculate that how do we figure out you know how to keep her bills paid overhead kind of keep our field expenses paid you know direct cost and then how to have some profit left over right and in taxes and all these other good stuff commissions so we we talked about the general structure of that hopefully it made some sense to you guys and it kind of helped you out and for many of you advanced guys maybe you were able to compare this method with what youre using and the same will apply with service so without further ado without further ado this will probably take you 10 minutes to get this rascal share Im gonna share my screen were gonna go right into the power point and Dennis if youll let me know youll have to unmute Im gonna go into presentation mode maybe and then I have to switch di

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Is repairs and maintenance an operating expense?

Operating costs include direct costs of goods sold (COGS) and other operating expensesoften called selling, general, and administrative (SGA)which include rent, payroll, and other overhead costs, as well as raw materials and maintenance expenses.

What type of expense is repairs?

Repairs and maintenance expense is the cost incurred to ensure that an asset continues to operate. This may involve bringing performance levels up to their original level from when an asset was originally acquired, or merely maintaining the current performance level of an asset.

Is repairs and maintenance an expense?

Repairs and maintenance are expenses for normal maintenance and upkeep of capital assets that are necessary to keep the assets in their usual condition. These expenses are recurring in nature and do not extend the useful life of the asset.

How do you record repairs and maintenance expenses?

To record a repair or maintenance expense in your records, debit the repairs and maintenance expense account by the amount of the expense in a journal entry. A debit increases an expense account. Credit either the cash or accounts payable account by the same amount depending on how you will pay for the expense.

How are ordinary repairs and maintenance recorded?

Ordinary repairs are simply recorded as expenses in the current accounting period, leaving the book value of the related fixed asset unchanged. Expenses are costs recorded on a companys income statement in the period in which the cost is incurred.

Is maintenance considered repair?

Technically, repairs can also be considered maintenance work (corrective maintenance). However, the difference between repair and maintenance work is that repairs aim to restore functionality while maintenance looks to preserve functionality.

How do you account for repairs and maintenance expenses?

To record a repair or maintenance expense in your records, debit the repairs and maintenance expense account by the amount of the expense in a journal entry. A debit increases an expense account. Credit either the cash or accounts payable account by the same amount depending on how you will pay for the expense.

What is considered a maintenance expense?

The term maintenance expense refers to any cost incurred by an individual or business to keep their assets in good working condition. These costs may be spent for the general maintenance of items like running anti-virus software on computer systems or they may be used for repairs such as fixing a car or machinery.

How are ordinary repair and maintenance costs recorded capitalize or expense?

Ordinary repairs are expensed immediately rather than being capitalized.

Are repairs and maintenance capitalized or expensed?

Under Generally Accepted Accounting Principles (GAAP), you must record repairs and maintenance expenses to operating expense in your records and report them on your financial statements in the period in which they were incurred.

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