THE BALANCE SHEET POCKET BOOK phần 8 pdf

PROFIT AND LOSS ACCOUNT

PROFIT NOT CASH

ATTRIBUTABLE COSTS

For `Profit’ to be a meaningful measure, ‘like’ has

to be compared with `like’.

DON’T SELL APPLES AND COST PEARS!

Hence Attributable Costs are the

operating costs associated with

producing and delivering the

items sold during the period

NOT

the amount of cash spent

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