Cost of Goods Sold and Income Statement
Tuesday, 3 April 2018
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A. Cost of Goods Sold
which is referred to as HPP is the cost of BD which has been sold for 1 (one) period. The HPP calculation consists of the following:
- Initial supply of BD period (+)
- Purchase for 1 period (+)
- Purchase discounts for 1 period (-)
- Return and purchase rebates (-)
- Transport cost for 1 period (+)
- Inventory end of BD period (-)
B. Gross Profit / Margin (Gross Profit / Margin)
Profit/loss from merchandise (BD) is the difference between BD net sales and cost of goods sold. This profit is called gross profit or gross margin. Gross profit indicates a company's ability to generate profit from BD transactions where there is a direct relationship between income
which is obtained at the expense of the company. This information allows the company manager to evaluate its main business activities, namely the purchase and sale of BD. From a GAAP perspective, gross profit calculation is the basic concept application of "matching cost with revenue".
C. Profit / Loss Statement
The profit/loss report commonly used in trading companies is a double step form
Summary
The trading company calculates the cost of goods sold to determine the price of merchandise sold during one period. By comparing between sales and the information about gross profit/margin is obtained.
Trading companies typically arrange profit/loss statements using multiple step methods. The profit/loss statement shows the gross sales profit, operating profit/loss, and net profit/loss. Net income is the result of business activities both from operational and non-operational activities.
Profit/loss from merchandise (BD) is the difference between BD net sales and cost of goods sold. This profit is called gross profit or gross margin. Gross profit indicates a company's ability to generate profit from BD transactions where there is a direct relationship between income
which is obtained at the expense of the company. This information allows the company manager to evaluate its main business activities, namely the purchase and sale of BD. From a GAAP perspective, gross profit calculation is the basic concept application of "matching cost with revenue".
C. Profit / Loss Statement
The profit/loss report commonly used in trading companies is a double step form
Summary
The trading company calculates the cost of goods sold to determine the price of merchandise sold during one period. By comparing between sales and the information about gross profit/margin is obtained.
Trading companies typically arrange profit/loss statements using multiple step methods. The profit/loss statement shows the gross sales profit, operating profit/loss, and net profit/loss. Net income is the result of business activities both from operational and non-operational activities.
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