COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
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Expenses
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The costs incurred to earn revenues (or sales). Outflows or the using up of assets as a result of the major or central operations of a business; also, liabilities may be increased.
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Persons using accounting information who are not directly involved in the running of the organization; examples include shareholders, customers, regulators, and suppliers
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Explanation:
Detailed explanation-1: -Net Income The excess of revenues over expenses for an accounting period.
Detailed explanation-2: -An expense in accounting is the money spent, or costs incurred, by a business in their effort to generate revenues. Essentially, accounts expenses represent the cost of doing business; they are the sum of all the activities that hopefully generate a profit.
Detailed explanation-3: -Operating expenses-also known as selling, general and administrative expenses (SG&A)-are the costs of doing business. They include rent and utilities, marketing and advertising, sales and accounting, management and administrative salaries.
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