Question

Royality on production is a ... expenses

Answer 1

Answer:

Royalty is a purchasing expense. It is the cost that the buyer bears to use the goods/services provided by the owner. ... Also, TV broadcaster music channels pay royalties to song owners, oil and gas industry pay royalties to landowners etc.

Answer 2

Profit in production ... costs are:

• Profit, based on production , will depend strictly on the Manufacturing or Production account.
• In the event that Royalty is paid for by sale, it will be part of the sale cost.
• It is the only account and at the end of the accounting year, the Royalty account balance needs to be transferred to a normal Trading and Profit account.
• “Production costs” are related to the cost of digging the well and bringing the product up, but do not include the cost of obtaining the product from the point of sale, as such costs are called post-production costs.  ”