The cost of sales includes direct expenses and indirect expenses.

Direct costs include: direct labor (wages of production workers) and direct materials (raw materials) manufacturing costs (wages of workshop managers and clerks cannot be directly used as low-value consumables of production materials, such as work clothes and labor gloves, that is, turnover materials).

Indirect expenses include: management expenses (most of all expenses incurred by the management department outside the workshop, but you don't know where they are included), financial expenses (expenses incurred by the financial department and interest, whether it is loan interest or deposit interest), and sales expenses (expenses incurred in selling products, such as local transportation expenses and after-sales service expenses).

Expense accounts include two kinds of accounts in accounting practice:

1. cost account: the cost account reflects the cost and expenditure and is used to calculate the occurrence and collection of costs. Wrong account selection for providing cost-related accounting information. The contents of cost and expenditure are different, which can be divided into production cost, manufacturing cost, labor cost and R&D expenditure.

2. Profit and loss items specifically include: main business income, other business income, fair value change profit and loss, investment income, non-operating income, main business cost, main business tax and additional environmental protection fund, other business expenses, sales expenses, management expenses, financial expenses, asset impairment loss, non-operating expenses, income tax expenses, and profit and loss adjustment of previous years.

The breakdown of expenditure is as follows:

(1) Sales expenses: advertising expenses, transportation expenses, packaging expenses, insurance premiums, sales commissions for preparing and carving fish sets, operating lease expenses, travel expenses, wages, welfare expenses, depreciation incurred by the sales department, and entertainment expenses.

(2) Management expenses: wages and salaries, welfare expenses, travel expenses, office expenses, depreciation expenses, repair expenses, material consumption, amortization of low-value consumables, technology development expenses, social security expenses, labor protection expenses, business entertainment expenses, trade union funds, employee education expenses, membership fees of shareholders' meeting or directors, amortization of start-up expenses, intangible assets, bad debt losses, taxes, fire fighting expenses, sewage charges, etc.

(3) Financial expenses: handling fees and interest.