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:
Dr Cr
Cash (15,000 × $15) $225,000
Common Stock $120,000
(15000 shares × Stated value $8)
Paid-In Capital in Excess of Stated $105,000
Value - Common
($225,000 - $120,000)
Inventory carrying cost means total expenses incurred while storing an unsold good.
<h3>What is
Inventory carry cost?</h3>
Basically, an Inventory carry cost means the total holding cost for holding an inventory which includes the cost of capital, warehousing, depreciation, insurance, taxation, obsolescence, opportunity cost.
In other word, the Inventory carrying cost means the total expenses incurred while storing an unsold good.
Read more about Inventory carrying cost
<em>brainly.com/question/25817334</em>
Catastrophes are the leading cause of fatalities in the construction industry as 349 total deaths related to it were reported in 2014.
Does catastrophe mean disaster?
A disaster is a catastrophe. If a marriage reception is disrupted by means of a fistfight among the bride and her new mom-in-law, you can name the occasion a catastrophe. Catastrophe comes from a Greek phrase which means "overturn." It initially referred to the disastrous finish of a drama, normally a tragedy.
Is COVID a catastrophe?
In the first take a look at case, the Federal court discovered that the first instance judge had made no mistakes in determining that there has been an “incipient home disaster” on the applicable time because of the incidence of COVID-19 in Australia.
What makes a catastrophe?
But catastrophe, as utilized by the middle for disaster Philanthropy, references a selected type of catastrophe – one that is extraordinarily large and is out of doors the coping capacity of a network. The equal danger (fireplace, as an instance) will be an accident, catastrophe or disaster depending upon scale of effect.
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