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urgent!! need advice.. accouting rules...

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  • 29-01-2011 7:52am
    #1
    rmflsdl
    Registered Users Posts: 24 ✭


    I have a question!!!
    for example,, I own a cake shop.
    we make cakes and sell them to the customers.
    I have only 1 employee who makes a cake but sometimes when we are busy the employee delivers it to a customer to help me.
    In this case, do i have to classify labour cost into direct L.cost(cost of sales) and indirect L.cost(expense)??
    is it okay to put all labour cost under either expenses or cost of sales???
    is Direct L.cost and indirect L.cost tax-deductable?
    Tagged:


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    #2
    Theboinkmaster
    Registered Users Posts: 3,994 ✭✭✭Theboinkmaster


    rmflsdl wrote: »
    I have a question!!!
    for example,, I own a cake shop.
    we make cakes and sell them to the customers.
    I have only 1 employee who makes a cake but sometimes when we are busy the employee delivers it to a customer to help me.
    In this case, do i have to classify labour cost into direct L.cost(cost of sales) and indirect L.cost(expense)??
    is it okay to put all labour cost under either expenses or cost of sales???
    is Direct L.cost and indirect L.cost tax-deductable?

    whether a cost is direct or indirect has no bearing on its tax deductibility - staff costs are deductible.

    as regards the classification of the costs - both would be direct costs, whether the employee makes the cakes or delivers them, both are direct costs.


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