EXPENSES
Expense is a type of cost which is incurred or spent on any
activity to achieve a goal.
Based on [Nature or Accounting] Point of View:
Based on [Frequency] i.e. No. of times it happens:
 |
Operating means to
perform any activity or control anything.
Expense is a type of cost which is incurred or spent on any activity
to achieve a goal.
Therefore,
operating expenses are those types of expenses that occur in the “Normal Course of Business”.
*Normal
Business:
1. Includes those
expenses which incur () from the purchase of raw material till the conversion of it to
the finished goods.
2.
Includes expenses on
those activities which are done to make the sale of finished goods.
**
Note: Items are not Expenses but are
included in the profit and loss Accounts on the DR. side.
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