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Yes.
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Is the direct expense part of prime cost?
yes it is part of the prime cost
Does advertisement form part of cost of goods sold?
Cost of goods sold incoporates all items to ad value to that product. So no, adverstising is an expense. Expenses are items used by a company to operate, like salries, telephones, travel, and advertising
Differences between selling expenses distribution expenses?
distributon expense is a part of selling expense. its comes under the heading of selling expense. selling expense included various other heads like advertisement expense, distribution expense, packing expense, octroi, sales tax, hidden profit, cost of product etc etc. while distribution expense is the expense occured by the producer of the goods in the form of transportation cost barred by him for making the goods reach the retailers, wholesellers or directly to the godown or factory outlet.
If the amount of loss in a manufacturing process is abnormal is it classified as a period cost?
Yes and charged to a separate account, such as Loss from abnormal Spoilage, and are shown as a separate item of expense on the current income. These losses do not become a part of the manufacturing costs trasferred to finished goods and cost of goods sold.
What is direct labor expense?
Direct labor expense is that amount which is paid to workers who are involved in production of goods in factory and their salary or wages are part of it.
Are cost of goods available for sale the same as cost of goods manufactured?
No, because cost of goods manufactured is part of the first. Cost of goods available for sale also includes purchases
Why is Frieght-in considered as Cost of Goods Sold?
Because freight in is the expense paid for the purchases to bring down to business place for manufacture of units of products and without these expenses those purchases will not be available and any expense done to bring any item to it's activity place is part of that activity expense.
To defray one's expenses is to?
To compensate or to pay part of a cost/expense.
Is royalty expense an operating expense?
Yes. This will form part of operating expense classified under non manufacturing cost since this is not directly attributable to the product.
What is the difference between cost and expense?
The difference between a cost and an expense lies on the matter of distinguishing and separately recognizing the used, utilized and expired portion of the cost, being that part is what we called an expense. An expense can also be described as a cost forgone since it is already been utilized and used. The expense is also recognized only in the income statement rather than in the balance sheet since utilization is recognized for a certain period of time. On the other hand, an unused or an unexpired cost is reported in the balance sheet as at a certain point of time. A costmight be an expense or it might be an asset. An expense is a cost that has expired or was necessary in order to earn revenues.
IS interest Expense an operating expense?
for trading business interest expense is always non-operating expense because of that "the person who use trading business is only to sell and purchase of goods" so the business activity is only to purchase and sell of goods. in this type of business, to perform these activities may face the expenses like transportation, employee salary and rent expenses and sort of thing. rather than interest expense which is an another expense these expense not use to generate operational goods in this type of business or operational income
What is inward?
carriage inwards is part of the cost of purchasing goods as it occurs when a business has to pay for goods it has purchased to be delivered to its premises
