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QuestionsCategory: MiscellaneousCost of Good sold and SGA Expenses
Cecilia Lui asked 4 years ago

Hi Victor
For a Tourism company like Straco Corporation, they have group all the expenses in one category.
Is Depreaciation and amortisation, consultancy, operating lease and repair and maintenance consider general SGA expenses?
And what about the changes in inventories and purchase of goods, can I put it under cost of good sold?
Thank you.
 
 

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4 Answers
Victor Chng answered 4 years ago

Hi Cecilia,
For service based business, to determine their COGS may not be as straight forward. It is depend on how conservative you want to be, some people use the total expense as the COGS or you can just take the total staff cost.

Victor Chng answered 4 years ago

Hi Cecilia,
 
As mentioned it depend on how conservative you want to be. You can also use Employee compensation, Sales and marketing and Utilities as their COGS. If not you can take the total expense. 

Adeline Ling answered 5 months ago

Hi there, this is for MarketAxxess, as per the screenshot, may I know what is considered COGS and what is considered SGA Expenses? Thank you.

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Victor Chng answered 5 months ago

Hi Adeline,
 
Employee compensation and benefits & Technology and communications is COGS.
 
The rest is SGA