- This topic has 1 reply, 2 voices, and was last updated 13 years ago by
.
- Posts
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?
For Services:
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 salesyou 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
- You must be logged in to reply to this topic.