Generally speaking, firms try to attribute production, marketing and sales expenses to cost of goods sold where possible. For example, firms may include factory salaries in cost of goods sold and other types of general administration salaries as a separate expense. An accurate cost of goods sold figure is essential to understanding the profitability of a firm.
Cost of Goods Sold
Education & Training
Meals & Entertainment
Pension Plan Contributions
NotesThere are many nuances in determining what is a valid business expense for the purposes of financial reporting and taxes. The list above is a general and global view of a topic as opposed to specific tax or accounting advice.
|Overview: Business Expenses|
A business cost for goods and services that are used up quickly.
A business cost for something that is used within a financial period or year.
A business cost that is immediately tax deductible.