Folks
I am working on finding out the health of our business performing the Profit/ Loss statement analysis. My question is for calculating the cost of goods for any third party items(items bought from a warehouse/dealer like chocolates,butter,cookies etc) should I calculate the gross sum of all purchase invoice made for that duration(1 month) like the lump sum payments made to this client for a month considering one client has several products or should I get the product cost of one unit of that item and then calculate the number of units purchased during that time frame for each product. The same applies to sales should I just go with the sales revenue(daily sales) for a month from the register or should I calculate the sales price of each item(n units) considering I know the selling price of each item. Please throw your ideas.
I had already opened a thread related to P/L but I guess this is different question from the earlier one. I apologize if this cause any inconvenience.
K
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