Select language:
cost of sales accounting

Financial Accounting (FI)

Type of P&L statement that matches the sales revenues to the costs or expenses involved in making the revenue (cost of sales).

The expenses are listed in functional areas such as:

  • Manufacturing
  • Management
  • Sales and distribution
  • Research and development

Cost of sales accounting displays how the costs were incurred with its functional structure. It represents the economic outflow of resources.