expenditures account payable cost of goods inventory control

expenditure

payment or disbursement

the expenditure may be for?

the purchase of an asset, a reduction of liability, a distribution to the owner, or an expense.

business expense

ordinary and necessary when running a business or trade

expense

required for something, the money spent on something

what are the two broad categories of expenditures

fixed cost and variable cost

what’s a fixed cost expenditure

remains the same level, regardless of practice caseload or sales

what are variable cost expenditures

change directly with caseload or client turnover.

what are examples of fixed cost expenditures

rent, utilities, insurance

what are examples of variable cost expenditures

lab fees, mileage charges, bank charges and cost of goods sold.

what are the three types of expenditures?

labor, cost of goods sold, operational expenditures

what are the top two expenditures

labor and cost of goods

accounts payable is what

when a company purchases goods on credit

accounts payable needs to be paid in a?

short amount of time

where does accounts payable fall under your balance sheet?

current liabilities

accounts payable typically includes the

utilities and drug products bought on the account

when you buy from a pharmaceutical company they record it as _______and you record it as_________

accounts receivable and accounts payable

cogs stands for

cost of good sold

cogs is the direct costs attributable to?

production of goods or products sold in a company.

what are the cogs for a veterinarian

1. product costs for medicine

2. diagnostics

3. procedures that go into making a diagnosis

4. procedures themselves

5. plus the labor costs

how do you calculate cogs?

beginning investment + purchase investment - ending investment

what are the limitations of cogs

easily manipulated

cogs require a?

physical count

what are the two greatest costs of opertation

payroll and purchasing inventory