Carriage inwards is a type of direct expense. It is the cost of transporting goods from the supplier to the buyer. It is included in the cost of goods sold, which is a major component of the income statement.
Direct expenses are expenses that can be directly attributed to the production of a good or service. They are included in the cost of goods sold, which is a major component of the income statement. Examples of direct expenses include:
- Cost of materials
- Direct labor
- Carriage inwards
Indirect expenses are expenses that cannot be directly attributed to the production of a good or service. They are not included in the cost of goods sold, but are instead included in operating expenses. Examples of indirect expenses include:
- Selling expenses
- Administrative expenses
- Depreciation
Current liabilities are liabilities that are due within one year. They are listed on the balance sheet as a current asset. Examples of current liabilities include:
- Accounts payable
- Accrued expenses
- Notes payable
Miscellaneous expenses are expenses that do not fit into any other category. They are usually small in amount and are not included in any of the major categories on the income statement or balance sheet. Examples of miscellaneous expenses include:
- Postage
- Telephone
- Travel
In conclusion, carriage inwards is a type of direct expense. It is the cost of transporting goods from the supplier to the buyer. It is included in the cost of goods sold, which is a major component of the income statement.