What expense category does vehicle maintenance come under?
There is no definitive answer to this question, as it can vary depending on the business and the type of vehicle being maintained. However, some common expense categories for vehicle maintenance include:
Operating expenses are those that are necessary to keep the business running on a day-to-day basis. This can include things like rent, utilities, and wages. For a business that uses vehicles, operating expenses also typically include fuel, insurance, and vehicle maintenance.
Capital expenditures are those that are necessary to purchase or improve long-term assets. This can include things like buildings, machinery, or vehicles. For a business that uses vehicles, capital expenditures for vehicle maintenance would typically include major repairs or replacements.
Depreciation is a method of allocating the cost of a long-term asset over its useful life. This can be done using the straight-line method, which evenly allocates the cost over the life of the asset, or the accelerated method, which allocates more of the cost in the early years. For a business that uses vehicles, depreciation for vehicle maintenance would typically be charged to the operating expenses.
In conclusion, there is no single answer to the question of which expense category vehicle maintenance comes under. It can vary depending on the business and the type of vehicle being maintained. However, some common expense categories for vehicle maintenance include operating expenses, capital expenditures, and depreciation.