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What is the right classification of the ( RAM, HD) of Pcs when you purchase group of any one of them ,it is under assets or maintenance Expenses.
Do they IMPROVE the performance of the asset or do they simply MAINTAIN the performance.
If they improve, then capitalize.
If they simply maintain, then expense
Ok?
What they always doing , for instance when you change the ram or HD what they did ?
always we change its for increase the speed or capacity of PCs not cause the they broken or something else.more calrification ,
for upgrade purpose cause the any new software needs more speed we need always to change the ram spprox every 3 or 4 year to be matching with the new softwares.
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