![]() On the other side, the retailer is concerned with the cost of acquisition of product till storage cost of finished goods. ![]() The manufacturer is concerned with the cost incurred from the purchase of raw materials to the storage cost of finished goods. Inventoriable cost is different for manufacturer and different for a retailer.As per matching principle, only those cost which relates to the goods sold should reflect on the cost side of the income statement. The Income statement has revenue figures at its top line.The direct cost includes the cost of raw material, wages paid to labourers, the fixed & variable factory overheads and transportation cost of bringing the goods at the present location & condition. Inventoriable cost is product specific costs i.e.This COGS should include all the costs incurred till the date of sale. ![]() Gross profit for such company is sale price less cost of goods sold. A manufacturing entity generates its revenue from sale of products.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |