what is the cost of sales for a service providing concern like a gym, where we have different membership packages , and we also have nutrition products being sold?
Of course, there would be no inventory. So there will be no need of dealing with stock measurements. Cost of sales would straightly be the cost of providing services.
For Nutrition Products:
in this case comes the concern of stocks. (How many products we bought + products which were in the closing stock of previous period – products which aren’t sold) x cost of products = cost of sales
you may incorporate the concept of lower of cost or nrv, but that would make this understanding far more complex.
for a service providing firm as you mentioned, there would be variety of stocks + services, each will be dealt separately, but amalgamated in one ‘cost of sales’ head
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