Answer:
Gross profit = net sales revenue - cost of goods sold. But what happens when your company doesn't sell any goods, specially if they only sell services and it is impossible to determine the COGS.
This is basically an accounting issue since the <u>IRS</u> defines COGS as:
- <em>The cost of products or raw materials, including freight </em>
- <em>Storage
</em>
- <em>Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products
</em>
- <em>Factory overhead the cost of inventory items sold </em>
So if your company doesn't sell any items from inventory, the IRS will not consider that your company incurred in COGS.
Reporting COGS is very useful for deducting business expenses, but it is not mandatory. Also, any expenses deducted as COGS cannot be deducted again as any other type of cost. So it is simply an accounting practice that helps certain industries to report their business expenses more clearly and in an orderly manner. But if it is too complicated to determine your company's COGS, then you can report your expenses in other ways and reduce your problems.
Answer:
Land 594,500
Explanation:
We must include all cost necessary to acquire the land and lelave it ready to use.
But, the demolition cost are associate with the old warehouse thus, as thsis asset is being destroyed It will be considered period cost, It will not be capitalized through land.
Acquisition cost 550,000
broker commission 35,000
title insurance 2,500
closing cost <u> 7,000 </u>
Total cost 594,500
Answer:
B. Economic classes
Explanation: its correct on eadg
The answer that is being described above is the broad emphasis. This are used by other artists in which they used this method when they try to pin point about something and tries to express them in their artwork without any exact rule or part to place the artwork that is being done. It is mostly used to point out the entire artwork that the artist is trying top point out or give the message.
