Page 9 - 342_

rials’ (The profit and should always be ‘Advertising’,
loss forecast is kept valued at cost. Your ‘printing’, postage’

simple in format with Enterprise Agency or and ‘stationery’ –
‘chanes in stocks’ and accountant can give we have assumed

‘work in progress’ you further advice.) is that besides the usual
being ignored. ‘Work the direct cost of what cost of letters there

in progress’ is the you sell. For a retailer was an initial

value of work which it is the cost of his/her distribution of leaf-

has been completed stock; for a plumber lets followed by

but not invoiced to a the cost of a bathroom local press adverti-

customer. In some suite or copper piping sing to advertise the

business, notably etc., whether these business.

manufacturing and actually paid for at the ‘Telephone’

building, it can be an time or not (they (Our example shows

important part of the might be bought on these as being

profit and loss credit, for example). It recorded on a

forecast. The profit does not include quarterly basis.

and loss forecast can larger ‘one-off’ pur- However, you may

be ajusted for ‘stock’ chases (e.g. a van) – find that you have

and ‘work in progress’ nor does the cost of more control over

by adding to the ‘cost these appear in the your finances if you

of materials’ figure profit and loss budget or these items

the difference between forecast. This is on a monthly basis.)

the value of ‘stock’ because they are – this includes £100

and ‘work in prog- regarded as being part phone bills subse-

ress’ at the beginning of the business’s quently arriven

of the period and the assets. quarterly.

value at the end of the

period. ‘Stock’ and

‘work in progress’ 9