Ask Evelyn

Opening and closing question marks

Opening and closing question marks (Photo credit: Wikipedia)

Here I answer any questions you may have about planning, budgeting, costing, cost of goods sold, etc

Simply enter a comment below and I will be sure to get back with you.

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4 thoughts on “Ask Evelyn

    • Cost of goods sold is defined as beginning inventory + purchases – ending inventory.
      Your beginning inventory is simply what you have at the beginning of the period, your purchases is what you buy during the period and the ending inventory is what you did not sell in the period.

    • Gross profit is different from net profit in that gross profit is arrived at by deducting the cost of goods sold or direct cost of selling from the total revenue (the total amount of money received).
      Net profit on the other hand is what is left over after all expenses have been deducted from total revenue.

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