November 4, 2025 2:37 AM PST
In cost Accounting Services in Jersey City, expenses are primarily categorized as either product costs (which are tied to manufacturing and become part of inventory) or period costs (which are non-manufacturing expenses).
Period costs are charged against revenue in the accounting period in which they occur. They are generally categorized into two main groups, based on their function within the business:
Selling Expenses
Administrative Expenses
1. Selling Expenses
Definition: These are all the costs incurred to secure customer orders and deliver the finished product to the customer. They are directly related to the company's sales efforts.
Examples include:
Marketing and Advertising: Costs for campaigns, brochures, public relations.
Sales Salaries and Commissions: Pay for the sales team and incentive payments based on sales volume.
Delivery and Shipping: Expenses to transport finished goods from the warehouse to the customer.
Finished Goods Storage: The cost of storing inventory after production is complete.
Travel and Entertainment: Costs incurred by the sales staff for client meetings and presentations.
2. Administrative Expenses
Definition: These are the costs related to the overall management and general operations of the company. They are necessary for running the business but are not directly tied to manufacturing or selling activities.
Examples include:
Executive and Office Salaries: Pay for the CEO, CFO, and accounting, human resources, and IT staff.
Corporate Office Rent and Utilities: Costs associated with the headquarters or main office.
Office Supplies: Stationery, printer ink, and general consumables used in the office.
Depreciation: Depreciation on Bookkeeping Services in Jersey City (e.g., computers, copiers) and the corporate building.
Legal and Accounting Fees: Costs for external professional services.
In cost Accounting Services in Jersey City, expenses are primarily categorized as either product costs (which are tied to manufacturing and become part of inventory) or period costs (which are non-manufacturing expenses).
Period costs are charged against revenue in the accounting period in which they occur. They are generally categorized into two main groups, based on their function within the business:
Selling Expenses
Administrative Expenses
1. Selling Expenses
Definition: These are all the costs incurred to secure customer orders and deliver the finished product to the customer. They are directly related to the company's sales efforts.
Examples include:
Marketing and Advertising: Costs for campaigns, brochures, public relations.
Sales Salaries and Commissions: Pay for the sales team and incentive payments based on sales volume.
Delivery and Shipping: Expenses to transport finished goods from the warehouse to the customer.
Finished Goods Storage: The cost of storing inventory after production is complete.
Travel and Entertainment: Costs incurred by the sales staff for client meetings and presentations.
2. Administrative Expenses
Definition: These are the costs related to the overall management and general operations of the company. They are necessary for running the business but are not directly tied to manufacturing or selling activities.
Examples include:
Executive and Office Salaries: Pay for the CEO, CFO, and accounting, human resources, and IT staff.
Corporate Office Rent and Utilities: Costs associated with the headquarters or main office.
Office Supplies: Stationery, printer ink, and general consumables used in the office.
Depreciation: Depreciation on Bookkeeping Services in Jersey City (e.g., computers, copiers) and the corporate building.
Legal and Accounting Fees: Costs for external professional services.