What do maintenance costs include?

Maintenance costs typically encompass expenses related to maintaining the operational efficiency and longevity of equipment and facilities. This includes both corrective maintenance, which addresses repairs needed due to breakdowns or failures, and preventative maintenance, which involves regular inspections and servicing to prevent future issues.

By focusing on both types of maintenance, the costs associated ensure that equipment remains in good working order and minimizes the risk of unexpected equipment failure that could lead to costly downtime. This comprehensive approach is essential in managing and budgeting for the overall upkeep of machinery and facilities, ensuring they operate efficiently and effectively.

In contrast, new equipment purchases are classified as capital expenditures, labor costs alone, while important, do not encompass the full scope of what maintenance costs entail, and marketing or advertising expenditures are entirely unrelated to maintenance costs.