Goods expenditure is the purchase of goods and services that use up to produce market and non-market goods and services. Shopping for goods, among others, can group into 3 categories of shopping, namely:
- Expenditures for the procurement of goods and services.
Expenditures for the procurement of goods that do not meet the capitalization value in the financial statements are categorize into operational expenditures and non-operational expenditures. Expenditures for the procurement of consulting services are not include in the category of services expenditure group.
- Maintenance spending.
Maintenance expenditures that are incurre and do not increase and extend the useful life and or are unlikely to provide future economic benefits in the form of capacity, production quality, or improvement of performance standards are still categorize as maintenance expenditures in the financial statements.
- Shopping trip.
Travel expenditure borne not for the purpose of acquiring fixed assets is categorize as travel expenditure in the … Read more “UNDERSTANDING GOODS AND CAPITAL EXPENDITURES (ACCOUNTING)”