What is the difference between sales price and purchase price for service item?
October 8th, 2009 | by x9a6a3sw |
jranaudo asked:
What is the difference between the sales price and the purchase price?
What is the difference between the sales price and the purchase price?
I figure the sales price is what the customer actually pays so….
how does the purchase price effect a company? Does is get recorded as cost of goods sold or something?
A service item would be consulting. Generally I study during the year and buy books so I understand that as being a “cost of goods sold” but not for a service item that is charged by the hour
Jayla
One Response to “What is the difference between sales price and purchase price for service item?”
By just_the_facts_ma'am on Oct 10, 2009 | Reply
In general, the purchase price is (eventually) recorded as cost of goods sold. In the case of products that are sold, they would go into inventory first.
Not sure what you mean by service item…