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    rox26m's Avatar
    rox26m Posts: 1, Reputation: 1
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    #1

    Nov 16, 2011, 03:09 PM
    In transportation business, is gasoline should be charged to cost of sale?
    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    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.
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