Salary of full-time employees and cost of hardware bought specially for your project count as:A….

➤ How should hardware bought for a project be treated in accounting?
Classify hardware as capital or expense based on your capitalization policy. If the item exceeds the capitalization threshold and offers useful life beyond one year, capitalize and depreciate it over time. Otherwise, record it as a current project expense. Depreciation may be allocated to the project according to accounting rules.