In the breaks of your TEDx event, it's good to provide food and beverages.

To reduce costs, a proper buffet can be replaced by light snacks, or finger food.

You were.

To calculate catering cost, multiply the number of expected guests with the cost per person.

let's do the accrual accounting income statement.

You could have gone on vacation on month three.

You also get 200 in advance from a customer that you have to cater for next month

So now it get's interesting, because you performed the catering that month and the catering you performed that month is worth 400.

I arranged catering for tomorrow's party.

I'm Nelson Dorkoff.

I don't even know what some of that stuff is! Is it even legal?!

But if you look at the accrual basis it better reflects that you actually did some catering that month.

let's imagine a situation where in month 2 you only have 100.

So you did no catering in month 3, and because you did no catering in month 3, you have 0 revenue in month 3, and then you also have 0 expenses, the way that you account for the 400 that you got, is that your accounts receivables goes to 0, and that goes to cash, so the negative 100 you add 400 to it, so it becomes positive 300.

Even though I've never seen any article. Have you? You set your own schedule.

And today I have Nelson.

So as you could see, we still have the same cost of goods to manufacture the product as before, 33.

You also get 200 in advance from a customer that you have to cater for next month

I have all of this overhead expense and often times, on a regular income statement, it will be called selling, general and administrative, or overhead costs, or operating costs or something like that.

Also, speakers are not being paid. This is a TEDx rule.

It could be just the cost of having salespeople travel around the country and taking people out to steak dinners.

And the numbers are used to make decisions.

Why would I want to invest in this buisness that's losing 200 a month?

Better luck tomorrow. I hope so.

I bought it for free you know that right?

To go to school?

And then the general and administrative, that's just all the stuff that the corporate office does, and all the people who are at that level.

There was a huge amount of crime.

What are the cost and expenses to operate the business model?

I really want to understand what's the cost structure to operate the business.

250 plus expenses.

My sister was struggling to get through undergrad.

Four, modern medicine.

Apparel 3 .

And if you keep going down, medical care 6 .

Squander it?

No use.

The person you are catering for, that you're buying those 200 of supply for, they're not going to pay you until next month, so you tell the people that you need to buy stuff from

Sometimes you have to pay salespeople, so you might have sales expense, and then the stuff like the corporate office and the CEO's salary, and you have to hire auditors and accountants and all of that.

UPS, and FedEx, and Postal Service.

If you look at the major categories they have food and beverages, housing

Many consumers rose up against the consumption tax.

Expense Report

Used Effort

A dollar... A dollar ten?