Question : Cost of Revenue from Operations -
Option 1: Revenue from Operations – Net Profit
Option 2: Revenue from Operations – Gross Profit
Option 3: Revenue from Operations – Closing Inventory
Option 4: Purchases – Closing Inventory
Correct Answer: Revenue from Operations – Gross Profit
Solution : Cost of revenue from operations = Opening inventory + Purchases + Direct expenses - Closing inventory .
In other words it is Revenue from Operations – Gross Profit
Hence the correct answer is option 2
Question : What is the formula for the cost of revenue from operations?
Question : Which of the following statements is false?
Question : What formula is used to compute the inventory turnover ratio?
Question : Opening Inventory Rs.29,000; Closing Inventory Rs.31,000; Revenue from Operations (Sales) Rs.3,20,000; Gross Profit Ratio 25% on Revenue from Operations.
Inventory Turnover Ratio will be
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