Why and who is it for?

Problem offered for discussion below is closely related to management accounting. To my mind it is really important regarding the following issues:

• Management information correctness
• Gross profit calculation
• Profitability

I'm describing below when the given problem can arise and also I'm giving a scenario and possible accounting algorithm of these operations. At the same time accounting transactions are not used for description purposes so that everything mentioned below could be understood by a person not familiar with financial (bookkeeping). The term "late costs" stand for such costs (e.g. transportation costs) which are invoiced when the goods have been:

• sold out
• exhausted over
• written off
• moved to another warehouse.

What I'm suggesting you here is to share your opinion on a possibility of any accounting assumptions or simplifications for your company or personally you as a manager.

Feel free to contact me: by e-mail, or just visit Guest Book and leave a message.

Sincerely yours,

Alexei.