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Sir, it might not be relevant for the class here, but
please, could you teach me how to figure out Gross profit margin in this format below?
“Continuing operations
Revenue”
Other income
Expenses excluding net finance costs
Profit/(loss) from equity accounted investments, related impairments, and expenses
Profit/(loss) from operationsFor Gross profit margin, firstly, Gross profit should be calculated, but I don’t know if other income or Expenses excluding net finance cost is included in COS.
Certainly sure that profit/ loss from equity accounted investments, related impairments, and expenses are categorized into other expense rather than cos.Other income
Expenses excluding net finance costs. Both of them are included in COS? sir?what’s more, for debtor days and inventory days, what figure must be used?
just use expense excluding net finance costs?
The cost of goods sold is precisely that. If they are buying the goods externally then it is simply the purchase cost. If they are producing the goods themselves, then it is all costs of production (i.e. all costs in the factory), so the cost of the materials, the cost of the labour in the factory, and the cost of all the factory overheads.
All ‘non-factory’ costs are then charged later in arriving at the net profit.All of this is explained in my free lectures, as are the figures to be used for debtors days and inventory days.
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