Statement of Consolidated Income (Profit & Loss)

Gross profit is calculated by...

• Revenue - Total Costs

• Revenue + Variable Costs

• Revenue - Cost of Sales

• Revenue - Fixed Costs

Cost of sales is calculated by...

• Opening inventory + purchases - closing inventory

• Opening inventory + purchases + closing inventory

• Adding up all of the inventory bought during the year

• Opening inventory - closing inventory

Which of the following are different terms for fixed costs?

• Expenses

• Expenditure

• Overheads

• Indirect costs

How do you calculate net profit?

• Gross profit - expenses

• Revenue - total costs

• Gross profit - variable costs

• Revenue - indirect costs

COGS stands for

• cost of goods sales

• cost of goods serviced

• cost of goods sold

Examples may include salaries, utilities, rent, insurance, and office supplies.

• Revenue
• Expense
• Net Income
• Net Loss

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Gross Profit = ?

• 800

• 500

• 700

• 300

Revenue = 1000

Cost of Goods Sold = 200

Expenses = 300

Net Profit = ?

• 800

• 500

• 700

• 300

Net Profit = 500

Revenue = 2000

Expenses = 1000

Cost of Goods Sold = ?

• 1500

• 1000

• 3000

• 500

Which one is not an expense?

• raw materials
• production costs
• commission received
• insurance