Week 1 Discussion Cost Terms 2 - There are many other areas...

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I work for a university. We offer a service (education), but since we are a private for-profit organization, we also sell our product (our degree programs). It is actually quite different from the state university that I attended for my undergraduate degree. Our expenses would largely include cost of marketing. These costs will include the wages paid to the marketing department, costs for advertisements on TV, newspaper, online, etc., and costs for printing items such as flyers and mailers. Another large expense is related to the enrollment advisors or the sales teams. There are over 500 sales representatives for our online department alone. Each one of those employees aside from their wages are provided with computers, office supplies, a phone (long distance charges are included), and a slew of training materials.
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Unformatted text preview: There are many other areas such as renting the buildings where the campuses are located that would fall under expenses, but I believe this covers the largest areas. These expenses would be found on the “expenses” section (the second section under the revenues) on the income statement. In a quick example shown on the link below, the expenses would be broken down into 4 areas. Wages – of all employees (teachers, sales and marketing department, etc) Cost of Goods Sold – This could be replaced by Cost of Marketing Product Utilities Expenses – For both campuses and sales offices Supplies Expenses – For in class and online classrooms/teachers. Would also include office supplies. Source: http://accountingaide.com/examples/incomestmt.htm...
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