Expenses on removal and re-erection of machines

Expenses are sometime
incurred on removal and re-erection of machinery in factories. Such expenses may be
incurred due to factors like change in the method of production; an addition or alteration in
the factory building, change in the flow of production, etc. All such expenses are treated
as production overheads. When amount of such expenses is large, it may be spread over
a period of time.
If such expenses are incurred due to faulty planning or some other abnormal factor, then
they may be charged to costing Profit and Loss Account.