Purchases are costs until those purchases are converted into sellable goods and actually sold for revenue.
so all costs become expenses? explain it
Profit, costs, and expenses are important within any business' profit and loss statements. The connection is that anything that is more than the costs and expenses of a product or service offered by a business is profit.
no, it is not necessary
Assigning indirect expenses to the department
Fixed Costs are expenses that don't change based on production or sales volumes. They include salaries, rent, insurance, accountancy costs. Variable Costs are expenses that vary based on production volumes. They include material, labor, utilities, and delivery costs
yes it is direct
The amount of the purchases for a period is presented in
by listing all the expenses
so all costs become expenses? explain it
costs
Profit, costs, and expenses are important within any business' profit and loss statements. The connection is that anything that is more than the costs and expenses of a product or service offered by a business is profit.
Major bank expenses are: Operational Costs - employee salaries; Captital Costs -buying equipment and or buildings; Financing Costs - interest expense for loans and bonds
Costs of goods sold are a type of expense and although the total may vary between the accrual and cash basis' of accounting, the method of calculating them is the same. Beginning Inventory + Purchases - Ending Inventory = Costs of Goods Sold. If you have no beginning or ending inventory (because you're using the cash basis)... you just add the purchases and applicable expenses. Some of which might be: direct materials and supplies, energy costs, freight, direct labor costs, etc.
Costs
the costs of operating
no, it is not necessary
costs