If we have to get the building materials of a house from a far off place, would it affect the cost
of building the house? Why?
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Expensing a construction cost is simply recording the purchase as an expense on the income, or, profit-and-loss (P&L) statement. Let's look at an example under a traditional double-entry accounting system: Build-It Construction Co. is invoiced for a $500 equipment rental.
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yes definetly it will affect the cost of building the house. Because if we will purchase the materials from far place it will charged extra for transport facilities and such other types of charged .
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