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Purchases are costs until those purchases are converted into sellable goods and actually sold for revenue.
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When does a cost become an expense do all costs become expenses?
so all costs become expenses? explain it
What is the connection between profit costs and expenses?
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.
Do all costs become expenses?
no, it is not necessary
A difficult problem in calculating the total costs and expenses of a department is?
Assigning indirect expenses to the department
What are the examples of fixed costs?
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
Can purchases be defined as direct expenses?
yes it is direct
The amount of the purchases for a period is presented in the expenses section of the income statement?
The amount of the purchases for a period is presented in
How do you determine the amount of net purchases?
by listing all the expenses
When does a cost become an expense do all costs become expenses?
so all costs become expenses? explain it
What is the term for legal expenses?
costs
What is the connection between profit costs and expenses?
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.
What are bank expenses?
Major bank expenses are: Operational Costs - employee salaries; Captital Costs -buying equipment and or buildings; Financing Costs - interest expense for loans and bonds
Do I have to calculate Cost of Goods Sold if the business uses the Cash acounting system?
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.
What is informal name for legal expenses?
Costs
Which of these defines the term "expenses"?
the costs of operating
Do all costs become expenses?
no, it is not necessary
What is the informal term for legal expenses?
costs
