Expenses Excluded from Cost

All capital expenditure will not include in cost accounting when we calculate total cost of product. Following are the main examples of expenses which will be excluded from cost.

1. Income tax and advance tax
2. Dividend paid
3. Discount on issue of shares and debentures
4. Underwriting commission payment
5. Capital losses
6. Expenses for purchasing of fixed assets
7. Loss on the sale of fixed asset
8. Interest on capital
9. Abnormal loss of material
10. Over depreciation
11. Investment of profit