Difference Between Office Supplies And Cost of Sales

Office Supplies or Office Supplies On Hand is either purchased by the business which is available for use in the business or remained on hand in business at the end of the accounting period. Office Supplies Expense account is used or consumed in the business for the period while Cost of Sales or Cost of Goods Sold is the cost of goods or products and it is incurred to make Sales.

Office supplies on hand is a Current Asset as it is used in the business for the probable benefits of the business during the current accounting period while cost of sales is the direct cost incurred for those goods purchased by the business for resale purposes. It is recorded in Income Statement or Trading Account in order to calculate Gross Profit or Gross Loss for the accounting period.