1,293 views

Management accounts – the profit and loss account detailed format 1

This blog gives more details relating to the items shown in the previous blog post
Management accounts – the profit and loss account basic format

Sales:
• Sales of services and the sale of goods excluding VAT (where VAT registered)
• Also include customer carriage costs and discounts given in respect of the sale of goods

Cost of sales (services):
• This should include any costs relating directly to specific sales
• Examples of direct costs include salary costs, advertising, software costs, webhosting

Cost of goods sold:
• Purchase price of the goods excluding VAT (where VAT registered)
• Purchase discounts
• Delivery costs to your premises
• Carriage costs to customers
• Merchant service costs
• Sales commission given to sales people in respect of sales
• Where goods are manufactured, costs are calculated using activity based costing which includes raw materials, direct labour and a proportion of overheads