Hello All ,
Our process , We manufacture , stock it and sell it
During this process we incur cost like
Rent , Uitlitlies (Electricity bills etc ) for which we will book accouting entry and make the payments
1) Utilities cost will be distributed to the products through allocation and distribution cycle and I belive Rent as well
----> please correct me if my understanding is wrong here
2) Now in the income statement , we will always be showing the actual expenses incurred right like Rent , utilities etc ?
it has nothing to do with the cost that was distributed in the above step right ?
3) Also Do we ever reclass the COGS ?