Is Carriage Inward a Direct or Indirect Expense?

by Anonymous

Q: Is carriage inward a direct or indirect expense?


A:
I assume you're talking about direct and indirect costs of a manufacturing business.

Direct and indirect costs are discussed in the
lesson on the manufacturing cost statement.

Carriage inward is part of the direct cost of the raw materials you purchased. In this instance (carriage for raw materials) it would not be counted as a separate expense but would form part of the cost of the asset.

I.e. you buy $1,000 of wood and the transport costs are $100 to bring it to your business. So the wood is valued in your records at $1,100.

This goes back to the rule that
an asset's value includes all costs necessary to get it to your business and into the condition in which it can be sold.

Consider getting our
basic accounting e-book, which discusses this topic in more detail (and contains many lessons not available on this site).

Click here to post comments

Return to Ask a Question About This Lesson!.






Enjoying this Website?
Help Support it with a Donation

OR...





Advertise on ventoup.ru

privacy policy




Related pages


what is an unadjusted trial balancecalculate vat from totalwhere to get cheap college textbooksdebit credit rules in accountingpaid dividend to stockholdersaccounting cycle examplebelong in tagaloghow to compute total assetsdefinition of capital expenseperpetual inventory formbad debt provision journal entryequity defdebtors ledger control accountmeaning of accounting conceptcash flow indirect method formatcarriage inwardscash ledger examplewhat is sales returns and allowancesowned synonymwip in manufacturingreceivable control account formatrate of markup formulaunderstanding debit and credit in accountingformula to calculate cost of goods soldcreditors control account formatinterest expense journal entryp&l account meaningwhat are p&l accountsjournal ledger trial balance balance sheet examplesbest books for accountingfirm meaning in tagalogdebits increase assetsdouble entry cash book examplejournaling accountingaccounting tutor torontocontra items in bank balance sheetwhat is equity in tagalognormal balance of expense accountcredit and debitsaccounts receformula for cost of good soldformat of petty cash bookretained profit definitionis trial balance a financial statementaccountancy tutorialsaccounting ledgersaccrued expenses and deferred incomespecific provision for doubtful debtsdefine sundry creditorswhat accounts belong in the general ledgerformat of cash flow statement in excelreverse calculate vatcost of goods manufactured and sold statement formatperiodic inventory system closing entriessynonym for equitycash receipt journal templatehow to calculate closing stock without gross profitcashflow statement direct methodbookkeeping practice worksheetsdepreciation vs expenseanother word for accruedebits and credits testdebtor reconciliationformat of balance sheet of banking companiesfifo questions and answershow to calculate fifohow to figure out percentage markupdouble entry bookkeeping basicssynonyms for equityoutstanding salary journal entryperpetual inventory system exampledouble entry bookkeeping system definition