April 2013 exam question 19: cost of sales

Discussion in 'CT2' started by Patrova01, Jul 15, 2017.

  1. Patrova01

    Patrova01 Active Member

    hi,

    I would like to understand why depreciation for delivery vehicles is not included in the calculation for cost of sales in the question above
    Thanks
     
  2. Simon James

    Simon James ActEd Tutor Staff Member

    Hi. The Examiners are usually happy to see a single depreciation line in the cost of sales, but if an item is clearly a distristribution cost (as delivery vehicles are) then it is more properly included in the Distribution line.
     
    Patrova01 likes this.

Share This Page