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Lanier Company spends 60,000 annually on fixed expenditures to produce and market that it sells for $15 per unit. The product's variable for and selling each unit are $9. 10,000 units are need to break even.
A payment made in cash or on credit to buy goods or services is referred to as an expenditure. It is recorded once, at the moment of purchase, as opposed to an expense, which is reported after it has been used up or expired. In this article, we'll go through the many sorts of expenses utilised in accounting and finance.
An accountant must provide proof that a transaction actually took place in order to report an expenditure. For instance, a sales receipt will serve as evidence of an over-the-counter transaction, whereas an invoice will serve as notification that payment is required for products and services. Organizations can keep a close eye on their transactions thanks to the documentation.
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