--%>
Assignment Help - homework help

Explain Cost of goods

Explain Cost of goods and how they are used in estimating gross profit and net profit of the business?

E

Expert

Verified

Cost of goods sold comprises total cost of opening stock and purchase. When company has incurred certain expenses on purchasing of goods then such expenses are as well comprised in buying goods cost. When there is any closing stock, we can just subtract from above total cost. After this, we can acquire the cost of goods sold. This amount is very significant since devoid of this, we can’t estimate gross profit and net profit of the business.

Cost of goods sold = Opening stock + Net purchase + Direct expenses - closing stock

   Related Questions in Financial Accounting

  • Q : Describe JOC in accounting Describe JOC

    Describe JOC in accounting?

    		•
  • Q : Different brooks of accounting Write

    Write down the different brooks of accounting?

    		•
  • Q : International financial management

    Explain the importance in studying the international financial management?

    		•
  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

    		•
  • Q : Closed-end country funds trading at

    Why closed-end country funds often trade at the premium or discount?

    		•
  • Q : Function of budgetary control play in

    Describe the function of budgetary control play in cost control? And also write down the requirements for its triumphant execution?

    		•
  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash

    		•
  • Q : Explain Project Accounting Project

    Project Accounting: It is sometimes termed to as job cost accounting and is the practice of making financial reports particularly designed to track financial growth of projects, which can then be utilized by managers to support project management.

    		•
  • Q : Explain accounting equation in brief..

    what is accounting equation? explain accounting equation and explain its importance?

    		•
  • Q : Abatement The process of allocating the

    The process of allocating the arrears of estate assets to the distributions. Distributions from the estate proceed in a particular order starting with specific legacies, effusive legacies, general legacies, and finally residuary legacies. If legacies assets are not capable to meet the will's prov

    		•