What are the three expenses?

Accounting expenses refer to the expenses related to production and operation, which can be roughly divided into three categories: sales expenses (operating expenses); Management expenses; Financial expenses.

1. Operating expenses are expenses incurred in the whole business process, including expenses incurred by the company in the process of selling goods and expenses incurred by commercial companies in the process of purchasing goods.

The transportation fees, loading and unloading fees, packaging fees, insurance fees, exhibition fees, advertising fees, as well as the staff salaries, welfare fees, business expenses and other recurrent expenses of the sales organization set up specifically for selling the company's goods can be recorded as operating expenses.

2. In the process of organizing production and operation, all kinds of expenses arising from the management behavior of the administrative department are called management expenses. Management expenses include depreciation, such as amortization of intangible assets, long-term assets and prepaid expenses.

As well as some taxes and fees, company funds incurred by the administrative department in the company's operation and management, or which should be borne by the company, such as trade union funds, unemployment insurance premiums, labor insurance premiums, directors' dues, employee education funds, research and development expenses, bad debt reserves, etc.

3. Financial expenses refer to the expenses incurred by the company to raise funds needed for production and operation. Including the company's production and operation interest expenses, exchange losses (some enterprises such as commodity circulation enterprises and insurance enterprises are accounted for separately, excluding financial expenses) and related handling fees.

It should be noted here that not all loan interest is included in the financial expenses. Exchange loss mainly refers to the book loss caused by the different exchange rates at the end of the month and the end of the year when the company has foreign currency business. Relevant handling fees refer to various expenses incurred during the communication between the company and financial institutions, such as settlement fees and related expenses paid for the purchase and issuance of bonds.