I am curious if anyone has come across this or has some advice. I am working for SaaS business that has different revenue streams including services and subscriptions. Currently, we bring all of the VP/Directors costs of the customer success team (technical support, installation services, etc.) 100% in Costs of sales. The majority of their time is spent on future planning/structuring of the department as we grow vs handling specific customer or revenue generating activities. I have reached out to different big 4 accounting firms and received two different answers. One was that all costs associated with the function need to be cost of sales and the other was OK if we allocated some portion of their time to operating expense, as long as consistently applied. I cannot find any specific guidance around this but curious if others have come across this before or have seen any public comps that speak to allocating time for VP/Directors between cost of sale and operating expense. Thanks
