--%>
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 : Matlab Applications in Digital Signal

    Digital signal processing appears like a nightmare for students as it is most difficult and tricky subject in engineering core curriculum. If you are getting troubles in digital signal processing assignment or related project, then move

    		•
  • Q : What is Market for foreign exchange

    Provide a complete definition of Market for foreign exchange.

    		•
  • Q : Depriciation techniques What are the

    What are the merits and demerits of the techniques shown below of depreciation? • Straight line process • Reducing balance process• Revaluation process • Usage process &b

    		•
  • Q : Define Conspicuous Consumption

    Conspicuous Consumption: It is the phenomena of spending money on services and goods which are not required but keeping them gives you a high social status. Those things are kept mainly for the purpose of displaying and creating a false image of your

    		•
  • Q : What is Assets in Accounting Assets are

    Assets are those resources that the business owns. Assets are the things of value owned which enable the firm to get cash or befit in future. There are mainly two types of assets: - Current assets & Fixed assets for e.g. cash, f

    		•
  • Q : Types of fixed asset in accounting How

    How many kinds of fixed asset are there in accounting? What are they?

    		•
  • Q : Benefit of Electronic Funds Transfer

    Illustrate the benefit of Electronic Funds Transfer?

    		•
  • Q : Segmented and Integrated capital markets

    Explain how cost of the capital is computed in the segmented vs. integrated capital markets.

    		•
  • Q : Measures to avoid financial crisis In

    In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.

    		•
  • Q : Evaluation of political risk State the

    State the factors you would consider in the evaluation of the political risk related to the making of FDI in the foreign country?

    		•