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What is the general approach as to when product cost are recognized as an expense?
Wiki User
∙ 9y ago
Product costs are recognised as expenses when those products are sold to third party or end user until that cost remains as an asset in business.
Wiki User
∙ 9y ago
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What is the general approach as to when product costs are recognized as expenses?
Product costs are recognised as expenses when those products are sold to third party or end user until that cost remains as an asset in business.
Costs that are treated as assets until the product is sold are called?
Costs that are treated as assets until the product is sold are called product costs. The costs are added to the inventory, and the expense is recognized when the inventory is purchased.
Is commission a selling or administrative expense?
If commission is paid on selling the product then it is selling expense .
Is telephone cost a variable cost?
No, telephone expense is an administration expense and administration expenses are not included in product cost so not a variable cost in the sence of product cost.
Is bad debt expenses considered a product cost?
Bad debt expense is a product cost, depends directly on sales.
What is the general approach as to when product costs are recognized as expenses?
Product costs are recognised as expenses when those products are sold to third party or end user until that cost remains as an asset in business.
Costs that are treated as assets until the product is sold are called?
Costs that are treated as assets until the product is sold are called product costs. The costs are added to the inventory, and the expense is recognized when the inventory is purchased.
Is professional fee expense an administrative expense or a selling expense?
Expenses which are incurred for the selling of product is called Selling Expenses while expenses incurred on administration of general day to day tasks are called administration expenses
Is commission a selling or administrative expense?
If commission is paid on selling the product then it is selling expense .
Is interest on fixed deposit an expense or income?
To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.
What is commodity or product approach?
Commodity = needs Product = quality In my POV, the commodity approach merely focuses on the consumers' demands whilst the product approach focuses on bringing consumer demand by creating a product that's of great quality.
Explain the matrix approach to product planning?
Explain the Matrix approach to product planning. Suggest a Marketing strategy on the basis of the product evaluation matrix.
Is telephone cost a variable cost?
No, telephone expense is an administration expense and administration expenses are not included in product cost so not a variable cost in the sence of product cost.
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 product approach?
The phrase 'product approach' mostly applies to the world of retail sales. It is when a sales person learns everything there is to know about a product, and can then recite all the features and benefits of the product to potential customers.
Difference between operating expense and direct expense?
Operating expense is the cost of running your day-to-day business. Operating expenses include rent, utilities, supplies, and insurance. Direct expense is an expense that varies with changes in the cost object. Direct expenses include materials needed to manufacture a product, freight charges to transport product, and taxes related to the sale of goods.
How does product cost become an asset and than an expense?
when units of inventory are sold
