The maintenance cost of production equipment can be included in both management cost and manufacturing cost. If the maintenance expenses of production equipment are included in the management expenses, then these expenses will be regarded as management costs and used to calculate the sales, general administration and other management expenses of the enterprise. This method is suitable for the situation that the maintenance cost is relatively low and will not directly affect the product cost.
If the maintenance cost of production equipment is included in the manufacturing cost, then these costs will be regarded as direct materials, direct labor and manufacturing costs, etc., and used to calculate the manufacturing cost of products.
This method is suitable for the situation that the maintenance cost is high and directly affects the product cost. It should be noted that in practice, enterprises can choose which subject to include the maintenance cost of production equipment according to their own situation.
However, no matter which subject is included, it is necessary to follow the financial accounting standards and tax regulations, and ensure that the financial statements truly, accurately and completely reflect the operating conditions and financial conditions of the enterprise.
Brief introduction of management expenses and manufacturing expenses:
1, management fee.
Management expenses refer to various expenses incurred by the administrative department of an enterprise for organizing and managing production and business activities. The specific items included are: company funds, trade union funds, unemployment insurance premiums, labor insurance premiums and directors' membership fees incurred by the board of directors and administrative departments in the operation and management of the enterprise, or which should be borne by the enterprise in a unified way.
As well as agency fees, consulting fees, legal fees, business entertainment fees, office expenses, travel expenses, post and telecommunications fees, greening fees, management personnel salaries and welfare fees. Management expenses belong to the period expenses, and are included in the losses or benefits of the current period when they occur.
2. Manufacturing cost.
Manufacturing expenses refer to the indirect expenses incurred by an enterprise for producing products and providing labor services, including utilities, depreciation of fixed assets, amortization of intangible assets, staff salaries of managers, labor protection fees, environmental protection expenses stipulated by the state, seasonal and shutdown losses during repair, etc.