ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is Utilities Expense? Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage. The expenses are incurred over the course of the reporting period, calculated, and accrued for, or payment is rendered.

Detailed explanation-2: -The amount of Utilities Expense for the sales function is classified as a selling expense and the amount used for administration is classified as an administrative expense. Utilities used in the manufacturing process will be part of the cost of the products manufactured.

Detailed explanation-3: -Factory utilities are generally classified as inventoriable costs. inventoriable costs are the costs that are involved in the product’s cost.

Detailed explanation-4: -General expenses definition General expenses are overhead costs, such as rent, utilities and office supplies, that help your business function.

Detailed explanation-5: -Utility services include telecommunications, electrical utilities, natural gas, certain transportation services, and also water and wastewater treatment services provided by private companies.