Daft cost of sale question

KaelaH

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

Monsoon

I'd probably put it in overheads, but I'm sure there are good arguments for putting it in direct costs too...

A-Vic

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

KaelaH

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