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Bad debt expense is a product cost, depends directly on sales.

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If the expenses for producing an item are more than what you can sell it for you will experience a what?

debt


Which of these helps you avoid debt by keeping your expenses below your income?

A personal budget


What is cost must be within a person's budget?

Cost refers to the amount of money required to purchase a product or service. It is essential for individuals to consider their budget when making financial decisions, as staying within budget helps avoid overspending and accumulating debt. A budget acts as a financial plan that outlines income and expenses, ensuring that costs remain manageable and aligned with one's financial goals. Balancing cost with budgetary constraints promotes financial stability and responsible spending.


What is the average cost of capital of the company If company cost of equity is 12 percent and cost of debt is 8 percent and the company is financed 35 percent by debt and tax rate 30 percent?

Cost of capital = (debt * percentage) + (Equity * percentage) Cost of capital = 8 * 0.35 + 12 * 0.65 Cost of capital = 2.8 + 7.8 Cost of capital = 10.6


Is it true the amount of debt is less than the income earned?

Whether the amount of debt is less than the income earned depends on the specific individual or entity being considered. For some, their income may exceed their debt, allowing for financial stability, while others may carry debt that surpasses their income, leading to potential financial difficulties. It's important to evaluate financial health by comparing total income to total debt, along with other factors such as expenses and assets.

Related Questions

Does consumer debt include mortgage payments?

Consumer debt typically refers to debt incurred by individuals for personal or household expenses, such as credit card debt, student loans, and car loans. Mortgage payments, which are specifically for purchasing a home, are not typically considered consumer debt.


Why did Jefferson reduce military expenses?

Jefferson reduced military expenses to lower the national debt


Was the US in debt when washington took office?

Yes, there was a war debt from Revolutionary War expenses.


Difference between cost of debt and marginal cost of debt?

Cost of debt is the original cost of borrowing including original interest rate Marginal cost of debt is new loan which extended from the previous one, the interest of which is called marginal cost of debt.


Which are costs subtracted from in calculating profit?

In calculating profit, costs subtracted typically include direct costs such as cost of goods sold (COGS), operating expenses (like rent, utilities, and salaries), and any other expenses directly related to running the business, such as marketing and administrative costs. Additionally, taxes and interest expenses on debt are also deducted from revenue to arrive at net profit. Essentially, all expenses incurred in generating revenue are considered to determine profit.


How does the cost of debt differ from the cost of capital?

Cost of debt considers only the cost that goes to the debtholders. Cost of capital considers debt and equity costs both.


If the expenses for producing an item are more than what you can sell it for you will experience a what?

debt


What will be the extra expenses from shopping online?

a lifetime of credit card debt


What does it mean to be in the red with expenses?

To be in the red is to have overspent, to be in debt, to owe money.


What if the expenses for producing an item are more than what you can sell it for what will you experience?

debt


Are dividends considered debt?

Not debt, but they are income.


Is equity considered debt?

No it is the opposite of debt.