Cost of sales plus profit is .a.selling price.b.value of goods produced.c.value of finished product.d.value of stocks.
Question
Cost of sales plus profit is .a.selling price.b.value of goods produced.c.value of finished product.d.value of stocks.
Solution
The correct answer is a. Selling price. Here's why:
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Cost of sales refers to the direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good.
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Profit is the financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.
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When you add the cost of sales and the profit together, you get the total amount that the customer pays, or the selling price.
So, cost of sales plus profit equals selling price.
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