Ordinary repairs and maintenance costs are incurred to maintain a long-lived productive asset and are expensed as incurred.

Ordinary Repairs

Ordinary repairs are routine maintenance expenses undertaken to maintain the efficiency and operating condition of an asset but do not significantly extend its life.

Maintenance Costs

Expenses incurred to keep property, equipment, or machinery in efficient operating condition and repair.

Productive Asset

Assets that are used by a business to generate revenue, which can include physical property, equipment, and machinery, among other items.