what is cost of revenue from operation and where is it shown in statement of profit and loss?
Hi
Cost of Revenue from Operation and Cost of Goods Sold are one and the same thing.
Cost of Revenue from Operation and Cost of Goods Sold are one and the same thing.
Cost of goods sold (or Cost of Revenue from Operations) refers to the expenses/cost incurred in making those sales.
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses - Closing Stock
= Purchases + Direct Expenses + Change in Inventory (opening stock - closing stock)
Thus, Cost of Goods Sold will appear in the Statement of Profit or Loss under the head 'Expenses' and at the same time 'Purchases', 'Direct Expenses' and 'Changes in Inventory' will not be shown.
Hope this clarifies your doubt!
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