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Administrative Expenses (also called Period Cost or Expense)
All executive, organizational and clerical expenses associated with the general management of an organization rather than with manufacturing, marketing, or selling are listed under this category. Examples are executive compensation, general accounting, secretarial for administration, public relations, and similar expenses involved in the overall, general administration of the organization as a whole.
Cost of Goods Sold (Product Cost)
Cost of Goods Sold (CGS) Expense pertains only to the merchandising and manufacturing companies. In merchandising companies, CGS is the purchase cost of the portion of inventory that is sold...
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