Cost Of Revenue From Operations Formula Class 12

For service based companies the formula is revenue number of customers x average price of services.

Cost of revenue from operations formula class 12. If purchase and other information is given cost of revenue opening stock net purchases direct expenses closing stock. Thus the cost of revenue is more than the traditional cost of goods sold concept since it includes those specific selling and marketing activities associated with a sale. Expected revenue expected revenue from business class. If gross profit is given cost of revenue revenue from operation gross profit 2.

Cost of revenue from sales or cost of goods sold or cost of sales can be calculated by applying the following methods 1. A sample sales revenue calculation. Use the following information to frame your answers and score extraordinary marks in your examinations. 19 revenue from operations 4 00 000.

The 10 million paid to its management and the rental costs of 8 million are indirect costs. From the information provided the company s cost of revenue is 31 million for the fiscal period. Calculate net profit after tax a 64 000 b 54 400 c 81 600 d 96 000. For producing the output the firm needs to employ inputs.

2 20 000 gross profit ratio gross profit revenue from operation 100 rs. The cost of goods sold does not include all the costs that were incurred to bring the products into a saleable condition. Cost of revenue from operations 60 of revenue from operations indirect expenses 15 of gross profit. Concepts of cost and revenue cbse class 11 class 12 economics.

However the truth is that the two are not the same. For a product based business the formula is revenue number of units sold x average price. Last year we sold 1 000 game consoles for 350 per piece. Gross profit revenue from operations cost of revenue from operations rs.

They are thought to be the same since they both calculate the costs incurred in making a sale. Why the sales. The cost of revenue is often confused with the cost of goods sold. A film s credit revenue from operations is 3 60 000 cash revenue from operations is 70 000 cost of reverse from operations is 3 61 200 its gross profit ratio will be.

Sales revenue 1 000 x 350 350 000. Hello students below is a topic of economics class 12 and class 11 based on the pattern of cbse class 12 economics. The cost of revenue is the total cost incurred to obtain a sale and the cost of the goods or services sold.