Source of Fund
is all money company has adding loan and capital
ASSETS (long-term assets)
These items business can use for a long time
VARIABLE EXPENSES (part of Cost of Goods Sold)
these expenses increase or decrease according to increase or decrease in the amount of production.
*EX: raw material direct employee gas water Packing charge
FIXED EXPENSES (Operating Expenses)
these expenses (electricity charge may change partly) will not change according to change in production
EX:
electricity
rent
management salary
Cost of good sold per unit
= Fixed exp+ Variable exp / number of unit sold