Purchase of Safety Equipment

3284 views 3 replies

Hi,

under which head does 'Purchase of Safety Equipment for Factory workers'  go. 

Is it Staff welfare expenses or Factory Expense ?

 

Thanks in Advance.

Replies (3)

Query  :  Safety Equipment for Factory workers, whether it is staff welfare expenses or Factory Expense
Ans :  If Safety Equipment life is more than 1 year, we should capitalized it otherwise it should transfer under Staff welfare Expenses

 

I guess there is no other way. If the safety equipment is needed it is capitalized. for example, fire extinguishers are refilled 5-6 years and form a part of PPE like CC cams if it is necessary. Band-Aids, medicines expire so they are (for the sake of a discussion) direct costs because they can be physically traced to the cost units aka factory 1, 2 etc. But are expensed like operating costs whilst they are direct costs as well. Lets see what's happens now. Well let me be frank, its an indirect cost, like medicines and first aid, but cost centers dont have direct or indirect cost allocations but ABC does. No abc doesnt as well, cause abc allocates indirect costs to direct costs on a cost unit. Sorry mi mistake.

Purchase of ppe

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 23 July 2026
Article

Gianender & Associates

New Delhi

CA Inter

View Details
Company
11 July 2026
CA semi qualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details