ECONOMICS

COST ACCOUNTING

TRANSFER PRICING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Bhamra Manufacturer has the following PnL for 2018:Sales = 1, 000/ COGS = 500/ Other expenses =250/ Interest expense = 50 and interest income =100 are both included in the other expensesWhat is the Operating profit in 2018?
A
200
B
250
C
300
D
no idea!
Explanation: 

Detailed explanation-1: -Operating profit is calculated as: Operating profit = Net profit + Non operating expenses-Non operating incomes.

Detailed explanation-2: -COGS counts as a business expense and affects how much profit a company makes on its products. Cost of goods sold is found on a business’s income statement, one of the top financial reports in accounting. An income statement reports income for a certain accounting period, such as a year, quarter or month.

Detailed explanation-3: -An income statement is a financial statement that shows you the company’s income and expenditures. It also shows whether a company is making profit or loss for a given period. The income statement, along with balance sheet and cash flow statement, helps you understand the financial health of your business.

There is 1 question to complete.