Question : What is the formula for the cost of revenue from operations?
Option 1: Sale – Net Profit
Option 2: Sale – Gross Profit
Option 3: Sale – Closing Inventory
Option 4: Purchase – Closing Inventory
Answer (1)
25th Jan, 2024
Correct Answer: Sale – Gross Profit
Solution :
Cost of revenue from operations = Sale - Gross profit
or
Cost of revenue from operations = Opening inventory + Purchases + Direct expenses - Closing inventory.
Hence option 2 is the correct answer.
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