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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


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 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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