Operating expenses cannot be transferred to the main business costs, including electricity, water, rent, telephone and so on.
The main business cost refers to the direct cost that a company must invest to produce and sell products or services related to its main business, mainly including raw materials, labor costs (wages) and depreciation of fixed assets.
"Main business cost" is used to calculate the actual cost incurred by an enterprise due to its daily activities such as selling goods, providing services or transferring the right to use assets. Under the subject of "main business cost", a subsidiary ledger should be set up according to the main business type for detailed accounting. At the end of the period, the balance of this account should be transferred to the "profit of this year" account, and there should be no balance in this account after the carry-over.
Generally speaking, the wholesale sales of commodities should be accounted for according to the original purchase price of commodities. When carrying forward the cost of sales, you can choose to use:
FIFO method, weighted average method, moving weighted average method, individual valuation method, LIFO method, gross profit margin method, etc.