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Working capital xyz Ltd. Cash cost basis

Financial Management

Sir while calculation of cost of production including depreciation it is given that sales - gp% = cop But sales - gp%= cost of sales know sir in question admin exp and selling exp are present then how will cost of sales become cop Please explain

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Sai E

Sai E

CA Foundation

37K+

23-Sep-20 23:40

343

Answers (3)

Sales - Cost of Goods Sold = Gross Profit.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

24-Sep-20 06:14

CA Suraj Lakhotia Admin

Sales - Cost of Goods Sold = Gross Profit.

Sir sales - cost of sales is gross profit know sir Sales - cost of goods sold = gross profit when there are no admin and selling exp but in the question admin and selling exp are present


Thread Starter

Sai E

Sai E

CA Foundation

37K+

24-Sep-20 15:24

Sales - Cost of Sales will be operating profit and not gross profit.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

25-Sep-20 17:02

Offer