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What are these? Management expenses are those expenses that do not directly relate to the company's production activities, but one way or another affect its development. This includes transportation costs, salaries of managers, etc.
How to manage them? Management expenses are planned in stages using different methods. As a rule, the larger the company, the higher the expenses, so it is worth thinking about ways to optimize them.
The article explains:
The concept of "commercial and administrative expenses"
Composition of chinese student data package management expenses
Planning of management expenses
Methods for optimizing management costs
Management expenses in accounting
Management expenses in tax accounting
Frequently Asked Questions about Management Expenses
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The concept of "commercial and administrative expenses"
The accounting policy of any company must necessarily reflect the procedure for recognizing management and commercial expenses. This in itself means that when calculating the cost of manufactured products, the mentioned expenses can be taken into account in different ways.
The enterprise has the right to independently establish the procedure for recognizing management and commercial expenses (necessarily reflecting it in the accounting policy in accordance with paragraph 20 of PBU 10/99). This is necessary for the preparation of accounting reports.
Management expenses
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In an organization, when accounting for management expenses, a portion of them (that which is considered expenses of the reporting period for ordinary activities) can be attributed to the cost of the manufactured product. And in the letter of the Ministry of Finance dated September 2, 2008, No. 07-05-06/191, it is stated that the entire amount of commercial and management expenses (if it is recognized in a specific reporting period) is allowed to be written off as the cost of sold products.
Next, we will discuss which expenses are considered commercial and which are considered management expenses.
Commercial costs include all expenses for the sale of goods or services. For example, this is the fee for:
packaging;
organizing delivery to the departure point;
loading onto transport;
intermediary services;
warehouse rental;
advertising events;
representative services, etc.