What will be the accounting treatment for cost related to maintaince contract.?

Question

We have Maintaince contract, which is our revenue. We have incurred expenses related repair the maintaince contract assets. This cost is our Direct cost or OPEX.

Answer 1

A cost is direct when it is tied to revenue and increases with revenue. So I'd say scheduled repair and maintenence should be treated as direct, unscheduled/emergency, as OpEx...