Cost refers to the cost charged to income in the period in which the work is performed. Costs can be classified into three categories as follows:
.Cost of goods sold (cost of sales) refers to the cost of goods sold or services rendered. That is, in order to sell the business. Cost of goods sold includes the purchase price and other costs necessary to make the product ready to sell.Production cost of the product. Which comprises raw materials, labor and manufacturing overhead
.Operating expenses (operating expenses) means that the costs arising from the sale of goods or services. And expenses arising out of the administration, the majority of the operations
.Other expenses (other expenses) refers to costs other than those classified as cost of sales and operating expenses. Such as interest, income taxes
.Costs for goods sold Cost of goods sold consists of the cost of operations. And other expenses. For business services, the cost will include the cost of operating and other expenses only.
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