DFS - Income statement/Distribution and Admin costs, please help!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi

Im just working through the Osborne Tutorial book for Unit 11, got the DFS exam next week.

One of the questions is to do an income statement and balance sheet from a trial balance given.

In the trial balance it doesn't have any 'distribution costs/admin costs' as stated on the pro forma income sheet.

If it doesnt actually say the above costs, how would you know which of the following to put under which heading?:

wages and salaries
directors fees
printing, telephone and stationery
general expenses
rent rates and insurance

If anybody could tell me which of the above go under either admin or distribution costs and why it would be much appreciated.

Thank You

Kelly :)

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Income statement/Distribution and Admin costs, please help!!

    i would class all of those as admin costs... distribution costs are only thngs directly related to selling as opposed to the day to day running of the business like marketing costs and things... does that make sense?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Income statement/Distribution and Admin costs, please help!!

    Hi Salma

    Thank you for your speedy response.

    In this case then i could just put all these under admin costs on the income statement pro forma and leave distributions costs as there isnt any?

    Do you know of anymore exmaples of distribution costs other than marketing? its just incase it comes up on Wednesday, if im asked to split them i wouldnt have clue!

    Thanks for all your help :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Income statement/Distribution and Admin costs, please help!!

    Hi

    Is anbody able to help me with this.

    Ta very much

    Kelly
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS - Income statement/Distribution and Admin costs, please help!!

    Carriage outwards...

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