Ask Experts Questions for FREE Help!
  Advanced
Register  |  Log in  
   Ask    
 Answer  
  Help  

Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.

Home > Business & Careers > Accounting   »   Calculating COGS

Answer this Question Ask about Accounting
 
Thread Tools Display Modes
Question
 
 
#1  
Old Jun 25, 2007, 06:24 AM
cvgalloway
New Member
cvgalloway is offline 		 
Join Date: Jun 2007
Posts: 1
cvgalloway See this member's comment history on his/her Profile page.
Calculating COGS
What can be included in COGS calculation?
We have a operations manager who thinks he can purchase anything and "resell" it to the customer. We are in the pump business, we sell pumps and parts.
This manager purchases GIFTS (given to an individual at company ABC) then includes these gifts as COGS for an order to ABC company.

Is this acceptable?

Thanks

Reply With Quote
 
     

Answers
 
 
Old Jun 25, 2007, 10:56 AM   #2  
Finance & Accounting Expert
CaptainForest is offline
 
CaptainForest's Avatar
 
Join Date: Nov 2005
Location: Canada
Posts: 3,672
CaptainForest See this member's comment history on his/her Profile page.CaptainForest See this member's comment history on his/her Profile page.CaptainForest See this member's comment history on his/her Profile page.CaptainForest See this member's comment history on his/her Profile page.
That is not ethical at all.

However, a business may include any costs in its COGS when trying to determine what selling price to make a bid for.

If he keeps adding these extra costs, his selling price will be higher than his competitors and ABC Company might go elsewhere.

Now, unless there is some sort of agreement between the 2 companies that they will pay 10% above the COGS, then what he is doing is very very wrong.
  Reply With Quote
 
     
Answer this Question Ask about Accounting

Bookmarks

« Previous Thread | Next Thread »

Thread Tools
Display Modes
Linear Mode Linear Mode

 
Similar Sponsors

Similar Threads
Question Asker Forum Answers Last Post
Help with calculating amount of Fe Candy368 Chemistry 2 Apr 28, 2007 10:12 PM
inventory value higher that cogs ogastelu Accounting 0 Apr 26, 2007 04:26 PM
calculating concentration cool_dude Math & Sciences 1 Jan 14, 2007 09:33 AM
yield calculating oneton99 Investing 1 Dec 16, 2006 07:03 AM
Cogs aleshiam Finance & Accounting 0 Oct 23, 2006 10:23 AM




Copyright ©2003 - 2007, Ask Me Help Desk.
All times are GMT -8. The time now is 05:50 AM.