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Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
Is inventory shrinkage recorded as an expense?
As a reduction to merchandise inventory
Is insurance an administrative expense or selling expense?
Insurance is an administrative expense as administration is authorized to do all these kind of expenses.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
Is Direct Cost an Expense?
Yes direct costs are expense when they are occurred and benefit of which are taken by company.
Is insurance a direct or indirect expense?
indirect-expense
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
Is inventory shrinkage recorded as an expense?
As a reduction to merchandise inventory
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.
What is carring cost?
Carrying cost is that expense or amount which required to incurred for stocking the inventory like insurance cost, storage cost etc.
Is insurance an administrative expense or selling expense?
Insurance is an administrative expense as administration is authorized to do all these kind of expenses.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
Is Direct Cost an Expense?
Yes direct costs are expense when they are occurred and benefit of which are taken by company.
Is insurance expense an asset or liability?
Prepaid insurance would be an asset. Insurance expense is when the insurance has been used up, thus making it an actual expense on the Income Statement. Whereas Prepaid Insurance on a Balance sheet is classified as an Asset.
An expense that does not require allocation between departments is a?
direct expense
How is fuel capture in accounting books?
fuel is a direct expense.direct expense is an expense which can be directly related with production.hence it is recorded as an direct expense in trading account.
Cost of inventory should be classified as?
expense
