If there is a better group for this question, let me know.
I'm doing some QuickBooks work for a friend in construction. He holds no
The default construction company chart of accounts places "cleanup &
dumping", "construction materials cost", and "equipment rental for jobs" in
the cost of goods sold category, but I rather think they would be plain
I suppose things like nails, where you buy thousands but use hundreds,
would be COGs, but for things like wood and drywall, which is bought in the
quantity for the job, those would be expenses. Plus, if he busy too much of
this stuff, he'll return it.
It also places tools and small equipment under COGs as well, but I would
have placed them under fixed assets.
Can any accounting types comment?