Hi Rusmin, Victor,
What is your take when considering COGS for telcos? I am looking at Singtel and it lumps everything as operating expenses. When digging further, within the operating expenses are:
- selling and admin cost (not COGS?),
- traffic expenses (is this COGS?),
- staff costs (not COGS?),
- cost of equipment sold (COGS?),
- repair and maintenance (not COGS?),
- other cost of sales – consists of auditor fee, impairment of trade receivable, allowance for inventory obsolescence, inventory written off, provisions for LD, operating lease payment of properties. (not COGS)
Is my classification correct?
Those not falling under COGS, should I categorized them under SGA?