revenue, cost of sales and gross profit Flashcards
revenue
the total sales recelved by an enterprise In a given financial period.
what is the cost of sales?
the cost of producing goods
when will enterprises usually calculate their revenue?
once a week
monthly
annually
what will an enterprise sometimes offer?
discount on the price of its products.
what is the net sales?
the value of discounts - the value of revenue
how do you calculate revenue?
Revenue = Price per item × Quantity sold
gross profit
the money an enterprise makes from selling a product once cost of sales has been deducted.
how do you calculate the gross profit?
Gross profit = Revenue - Cost of sales
what is the cost of sales?
that products cost money to make
what is the cost of sales also known as?
cost of goods sold
how will cost of sales vary?
depending on the product made
what does cost of sales include?
cost of all the various items required to make a product.
what will a cost of sales of a ready meal include?
the individual ingredients and the packaging.
how do you calculate cost of sales?
by adding together the cost of the Individual items.
