Classifying by function-income statement, Financial Accounting

By classifying by function

Under this format, the expenses of the company are classified into 5 major categories i.e.

  1. Cost of sales [(opening stock + purchases – closing stock) and deprecation]
  2. Distribution costs (transport costs, selling expenses, commission, provision for bad debts etc)
  3. Administration expenses (salaries and wages, telephone, rates, postage, rent etc, goodwill amortization)
  4. Other expenses (all other not falling under the above) groups of expenses)
  5. Finance cost (interest on loan and  bank overdraft, interest on finance lease, dividends on redeemable preference shares).
Posted Date: 12/11/2012 11:55:34 PM | Location : United States

Related Discussions:- Classifying by function-income statement, Assignment Help, Ask Question on Classifying by function-income statement, Get Answer, Expert's Help, Classifying by function-income statement Discussions

Write discussion on Classifying by function-income statement
Your posts are moderated
Related Questions
A portfolio consists of the following three assets A, B and C. (a) Assuming a risk-free rate of 5.85 per cent and an expected return on the market of 13.60 per cent, calculate t

Create a description of your company and its primary business activities. Include: a) A brief historical summary b) The lines of business the firm is engaged in (Is the compa

Q. Show the Capitalized Cost? Capitalized Cost - Expenditure identified with services or goods acquired and measured by theamount of cash paid or market value of other property

Define reasons that influence a firm's degree of transaction exposure? What reasons influence a firm's degree of ‘transaction exposure' in a certain currency? For each reason d

In February, one of Team Shirts' best customers went bankrupt owing team shirts $85. Team shirts uses the sales method for estimating bad debts. February sales were $15,000. The ac

During its financial year ended 30 June 20x7 Beavers Ltd, an engineering company, has worked on several contracts. Information relating to one of them is given below.

Baseball Products manufactures a single product with the following full unit costs at a volume of 2,000 units: Direct materials $ 900 Direct labor 360 Manufacturing overhead* 6

On January 1, 2010, Anderson Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued

The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is e APR