Difference Between Office Supplies And Cost of Sales
Office Supplies or Office Supplies On Hand is eit h er purc h ased b y th e b usi ness w h ic h is available for use in t h e business or remained on h and in b usi ness at t h e end of t h e accounting period. Office Supplies Expense account is used or consumed in t he b usi ness for t he period while Cost of Sales or Cost of Goods Sold is the cost of goods or products a nd it is incurred to make Sales . Office supplies on h and is a Current Asset as it is used in t he b usi ness for t he pro b a b le b e nefits of t he b usi ness during t he curre nt accounting period w hile cost of sales is the direct cost i ncurred for t h ose goods purc hased b y the b usi ness for resale purposes. It is recorded in Income Statement or Trading Account in order to calculate Gross Profit or Gross Loss for t he accou nting period.