Business Administration 2295F/G Study Guide - Quiz Guide: Trade Union Confederation Of The Americas, Profit Margin, Accounts Payable
4 Oct 2015
School
Department
Professor
Document Summary
[3 marks total] the cost of goods sold are costs directly associated with sales. (1 mark) Operating expenses are generally costs that are not directly associated with sales. (1 mark) Cogs are not equivalent to cash that is if you sell 10 items, only the purchase cost of 10 items is included. Cogs = beginning inventory + purchases ending inventory. Operating expenses tend to be simply the actual amount of cash spent on the account during the accounting period. (1 mark) Most students should get the first two points. They may use examples of each type of cost to explain. To get the third mark look for something that contains the points discussed above. Doesn"t need to be exact wording but needs to make sense: [2 marks] the purpose of accounting amoritization(depreciation) is to allocate the cost of an asset over its useful life. Wording doesn"t have to be the same and explanation can be very brief.
