Repairs and maintenance do not include
A)the costs of restoring an asset's service potential after breakdowns.
B)expenditures that increase the asset's life.
C)routine costs such as for cleaning and adjusting.
D)major tune-ups including labor and parts.
E)All of the above are not considered to be repairs or maintenance.

Question

Quizplus · Accepted Answer

Repairs and maintenance are generally considered to be routine, ongoing costs necessary to keep an asset operating efficiently. Expenditures that increase an asset's life, such as upgrades or improvements, would not typically be classified as repairs or maintenance.

Repairs and Maintenance Do Not Include