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Raw materials for making products Packaging and shipping products to customers Finished product inventory Direct overhead budget for utilities and warehouse or factory rent Indirect budgets such as labor storage and supervisor salaries for a factory or warehouse. Cost Accounting Accountants use cost to refer specifically to business assets and even more specifically assets.

The cost sometimes called the cost basis of an asset includes any costs to bulk sms saudi arabia purchase deliver and prepare the asset and to train employees in its use. For example if a manufacturing business purchases machinery the costs include delivery setup and training. The cost basis is used to establish the basis for depreciation and other tax factors. The cost of assets appears in business accounting on the balance sheet.

The initial cost will always be shown then accumulated depreciation will be deducted with the result being the book value of the asset. All business assets are combined for balance sheet purposes. Accounting Expenses Expenses in accounting are used to determine profit. Profit calculation is Income minus Expenses Equals Profit. Accountants see two types of costs fixed and variable.