Which Is Not A Selling Expense?

Which of the following is not selling expense?

Explanation: Office salaries expense would not come under a selling expense..

What are general administrative expenses?

General and administrative (G&A) expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department within the company. … G&A expenses include rent, utilities, insurance, legal fees, and certain salaries.

What are under selling expenses?

SG&A includes all non-production expenses incurred by a company in any given period. It includes expenses such as rent, advertising, marketing, accounting, litigation, travel, meals, management salaries, bonuses, and more. On occasion, it may also include depreciation expense, depending on what it’s related to.

Which is not a fixed cost?

Fixed costs are those which are fixed for the production period. Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.

Is selling expense a fixed cost?

Selling and administrative expenses appear on a company’s income statement, right under the cost of goods sold. … The office building or warehouse rent is a fixed administrative expense, while the cost of office supplies and utility expenses count as variable administrative expenses.

Is Cost of goods sold a selling expense?

Because COGS is a cost of doing business, it is recorded as a business expense on the income statements. Knowing the cost of goods sold helps analysts, investors, and managers estimate the company’s bottom line. If COGS increases, net income will decrease.

What is the purpose of reporting comprehensive income?

The purpose of reporting comprehensive income is to report a measure of all changes in equity of an enterprise that result from recognized transactions and other economic events of the period other than transactions with owners in their capacity as owners.

Which of the following is not a selling overhead?

Legal cost on debt realization is not a selling overhead. Selling expenses are those expenses which are incurred to promote sales and service to customers.

Which of the following is included in comprehensive income?

Comprehensive income is the variation in a company’s net assets from non-owner sources during a specific period. Comprehensive income includes net income and unrealized income, such as unrealized gains or losses on hedge/derivative financial instruments and foreign currency transaction gains or losses.

How is selling expense calculated?

The basic formula is: beginning inventory + purchases – ending inventory = COGS. This equation suits some businesses, but others that store an inventory of finished goods prior to selling may use a variation called change in inventory accounting.

What selling expenses are deductible?

Tip: According to the IRS Publication 523, if you, as the seller, paid for “transfer taxes, stamp taxes, or other taxes, fees, and charges when you sold your home” you can treat these as selling expenses and deduct them from your home sale profit.

What is a general expense?

General expenses are the costs a business incurs as part of its daily operations, separate from selling and administration expenses. … Examples of general expenses include rent, utilities, postage, supplies and computer equipment.

Which items are excluded from cost sheet?

Following are the main examples of expenses which will be excluded from cost.Income tax and advance tax.Dividend paid.Discount on issue of shares and debentures.Underwriting commission payment.Capital losses.Expenses for purchasing of fixed assets.Loss on the sale of fixed asset.Interest on capital.More items…

What are examples of selling expenses?

Selling expenses can include:Distribution costs such as logistics, shipping and insurance costs.Marketing costs such as advertising, website maintenance and spending on social media.Selling costs such as wages, commissions and out-of-pocket expenses.

What are the cost of sales?

Cost of sales refers to the direct costs attributable to the production of the goods or supply of services by an entity. It is also commonly known as the “cost of goods sold (COGS)”. Cost of sales measures the cost of goods produced or services provided in a period by an entity.

What is fixed selling overhead?

Fixed overhead costs are costs that do not change even while the volume of production activity changes. Fixed costs are fairly predictable and fixed overhead costs are necessary to keep a company operating smoothly. … Examples of fixed overhead costs include: Rent of the production facility or corporate office.

What are the three components of retained earnings?

The three components of retained earnings include the beginning period retained earnings, net profit/net loss made during the accounting period, and cash and stock dividends paid during the accounting period.

Which of the following is not reported on a balance sheet?

Assets and liabilities are classified as current and non-current or long-term. In addition, stockholders’ equity is also reported as the excess of assets over liabilities. Net income is reported under the income statement and not in a balance sheet.