Office equipment expense definition

What is Office Equipment Expense?

Office equipment expense is the cost incurred to maintain and operate office equipment. This can include both tangible items and expenses related to their upkeep or usage. Several examples of office equipment expense are as follows:

• Equipment purchases. The purchase of computers, monitors, printers, copiers, scanners, telephones, furniture, and filing cabinets.

• Maintenance and repairs. The cost to service office machines and repair damaged equipment.

• Consumables. The cost of ink cartridges, paper, and toner.

• Accessories. The costs of power cords, adapters, and other peripherals.

• Leasing. The cost to lease office equipment.

Accounting for Office Equipment Expense

Office equipment expense is charged to expense in the period in which it is incurred. Thus, it is classified as a period expense. Office equipment expense is not capitalized into an asset, since it does not provide a benefit over an extended period of time.

Presentation of Office Equipment Expense

Office equipment expense is usually classified within the selling, general and administrative grouping of expenses in the income statement. It is rarely stated within a separate line item on the income statement, since the amount is usually relatively small.