What expense category are supplies?
This is a difficult question to answer, as there are multiple expense categories that could be considered "supplies". However, we will do our best to provide an answer that is most relevant for a business owner or finance team.
One Potential Answer: Cost of Goods Sold (COGS)
One potential answer is that supplies are considered a part of the "cost of goods sold" (COGS). This is the cost of the inventory that a company has sold during a particular period of time. It includes the cost of the raw materials, labor, and other expenses incurred in producing the goods. COGS is typically a part of the operating expenses on a company's income statement.
Another Potential Answer: Operating Expenses
Another potential answer is that supplies are considered a part of the "operating expenses" on a company's income statement. Operating expenses are all the expenses that a company incurs in order to keep the business running. This includes rent, utilities, salaries, and other general and administrative expenses.
The Bottom Line
Ultimately, the answer to this question depends on the specific business and their accounting practices. There is no one-size-fits-all answer. However, we hope that this article has provided some helpful guidance on which expense category is most likely to be appropriate for supplies.