1- does product testing expense is capital expenditure or revenue?
2- expense related to event of launch of new products is revenue or capital expenditure?
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Product testing expense
Replies (4)
Quick Summary
Most of the cases, both considered as revenue expenditures.
If product is new by range of products then testing exp can be considered Revenue & if the product is totally new by nature/origin then the expense can be capitalized.
AS 26 or Indas doesn't mention anything about new range or new origin. Can you help me with the standard Paras please.
I just know research and development phases
Product testing expense refers to the costs a business incurs to evaluate a product’s quality, safety, performance, and compliance before it is released to the market Voopoo Argus P3 Pod Kit 30W. These expenses can include laboratory testing, prototype development, third-party certification fees, user trials, quality assurance staff time, and the tools or equipment needed to conduct tests.
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