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Daft cost of sale question

KaelaHKaelaH Well-KnownFMAAT, AAT Licensed Accountant Posts: 131
I am currently doing some bookkeeping for a local Preschool, the only thing I can't quite get my head round is whether or not Wages and Salaries for the Childcarer's is a cost of sale or an overhead?

Many thanks


  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    I'd probably put it in overheads, but I'm sure there are good arguments for putting it in direct costs too...
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    Maybe am looking at this wrong but isnt a preschool providing a service so there isnt a cost of sale but wages and salaries are an expence to the P&L
  • KaelaHKaelaH Well-Known FMAAT, AAT Licensed Accountant Posts: 131
    Thank you both, I was thinking the same thing but doubted myself, couldn't quite get my head round it.
    I'll leave it in overheads
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