Inventory or incidental cost, Accounting Basics

Assignment Help:

While perusing medical practice, is the cost of supplies, for patients on site, considered as an inventory, or an incidental cost? With 2 million in sales the chemotherapy medicine costs about $200,000 per year and there is probably 50,000 on hand at any given time.


Related Discussions:- Inventory or incidental cost

Determine the estimated direct labor, 1. Shaving 5% of the estimated direct...

1. Shaving 5% of the estimated direct labor hours in the predetermined overhead rate will result a high overhead rate, which would likely result a high credit balance of overapplie

Location based commerce, .1  INTRODUCTION The world keeps developing new w...

.1  INTRODUCTION The world keeps developing new ways and technologies to help do things and achieve a timeline shorter compared to the way it previously used to be done. New techn

Obtain relevant authoritative literature on accounting, Obtain the relevant...

Obtain the relevant authoritative literature on accounting for accounts receivable using the FASB's Codification Research System at the FASB website. What is the specific citation

Explain cash basis of accounting, Q. Explain cash basis of accounting? ...

Q. Explain cash basis of accounting? Professionals such as lawyers and physicians and some relatively small businesses may account for their revenues and expenses on a cash bas

Show earned service revenue and received cash, Earned service revenue and r...

Earned service revenue and received cash As its first transaction in July Metro performed deliverance services for customers and received USD 4800 cash. This transaction improv

Responsibility of general manager and salesperson, Q. Responsibility of Gen...

Q. Responsibility of General Manager and salesperson? Upon promotion to manager Tracy will start the transformation from auditor to executive. She will manage numerous audits a

Define an accounting system, Q. Define an accounting system? Effects fr...

Q. Define an accounting system? Effects from a recent survey of 1400 chief financial officers (CFOs) indicate that tomorrow's accounting professionals will be called upon to br

What do you mean by return on investment, Q. What do you mean by Return on ...

Q. What do you mean by Return on investment? Return on investment (ROI) -- a measure of efficiency and effectiveness with that managers use resources available to them, express

Assignment, o depreciation on the building has been recorded in 2016. Depre...

o depreciation on the building has been recorded in 2016. Depreciation on the building is based on Double-Declining Balance. It was purchased on 1/1/15 and has an estimated useful

inventory expenses

2/19/2014 3:22:31 AM

Chemotherapy supplies deals  with a medical practice which are considered as inventory or prepaid expenses. As in Tax Court case back that took place  in 1999 which is in favour of the medical entity that did expense the supplies. However, the favourable ruling which is largely the result of the argument on reporting on an accrual basis of accounting. We will  recommend that a practice expense the supplies on hand until they are consumed as is IRS guidance.

Lize

2/19/2014 3:55:49 AM

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd