What Constitutes the Cost of Doing Business

Thomas a Fernley

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Postage.
Telegraph.
Telephone.
Insurance: Fire, credit, casualty, partnership, bonds, liability, plate glass. Depreciation on merchandise on hand. Unjust claims by customers. Charity.
Damage, breakage, loss, freight and express charges on returned goods. Collections.
Miscellaneous expense. Repairs. Store supplies.
Fuel. Warehouse supplies.
Light. Warehouse fixtures.
Heat. Store equipment.
Power. Office equipment.
Freight. Taxes.
Bad debts. Legal expense.
10 It is far wiser when in doubt to char...ge an item to the expense account than to charge it to the mer- chandise or any other account.
Every expense which is shown on the ledger, every amount for which you have no positive credit return upon your ledger, is chargeable to the cost of doing business. In other words, practically every expenditure should be put in . The expense account, except amounts paid for merchandise, and, in some cases, freight.
Exceptional or special business R * 1 should not be considered in ascer- . . 1 or bpecial taming the average percentage or ex- R 7 pense, for if included in the amount of gross sales, it will give an incorrect and mis- leading result and cause a loss on the regularly obtained business.

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