Do electricity charges comes under Administrative expenses?



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Does Operating Expenses includes Depreciation and Amortization?
Are electricity charges comes under Administrative expenses or they comes under different head?


1 Answer(s)


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Yes Op.Ex includes Depreciation & Amortization. Though D&A are non-cash expenses, they are still considered operating expenses since D&A are investments in assets that generate revenue.

Electricity charges for office etc comes under Admin expenses. However, electricity charges for a factory will not be under admin expenses - it could be under other accounts that could vary from company to company.

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