accouts query
This query is : Resolved
03 November 2008
While calculating cost of goods in consignment we consider only non-recurring expenses but while calculating cost of goods in joint venture every expense incurred by the joint venturers is considered. Why??
S.Srinivasaraghavan
(Expert)
03 November 2008
It depends upon what you call as non-recurring. Can you give an example?
03 November 2008
Freight, carriage are examples of non-recurring expenses.
Recurring expenses like selling expenses are not considered while calculating cost of goods in consignment but are considered in joint venture. Why is it so?
Recurring expenses like selling expenses are not considered while calculating cost of goods in consignment but are considered in joint venture. Why is it so?
S.Srinivasaraghavan
(Expert)
04 November 2008
Freight carriage etc., are direct expenditure relating to the consignment. Therefore they are absorbed as cost of goods. In the case of selling expenses it is post acquisition general expenditure.
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