Hi guys:
For a retailer with physical stores, would you include “rent expensed ” of stores in cogs or Sg&a? Thank you!
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I've seen this typically accounted for within SG&A.
More importantly, let's discuss this company's ability to continue as a going concern given trends toward digital native strategies.
If rent expense is broken down individually on the income statement, I've typically seen it grouped within OpEx. As a result, when it isn't broken down I assume it's considered part of SG&A.
As a useful rule of thumb, any COGS item should translate to Inventory. If the expense has no bearing on inventory, it's most likely an SG&A expense.
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