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Carriage in, carriage out and discounts in the P&L statement

Former userFormer user8y ago

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John MoffatJohn MoffatTutor8y ago#1
The cost of sales is all costs of producing the goods, and only the cost of producing the goods. Carriage inwards increases the cost of the materials and so is a cost of sales. Carriage outwards and discounts for early payment are not a part of the production cost and so are not part of cost of sales.
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