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View Full Version : In transportation business, is gasoline should be charged to cost of sale?


rox26m
Nov 16, 2011, 03:09 PM
Our business is transporting patient, so gasoline is directly related to income. What is the correct account to use? Gasoline expense or cost of sales ( cost of good sold? )

rehmanvohra
Nov 16, 2011, 10:41 PM
According to your question, you are engaged in ambulance service. In such a situation the cost of gasoline is a direct expense. I would suggest you refer to a good text book where the topic of operating costing is discussed. I can quote one: Management and cost accounting by Colin Drury.