Determining the cost of sales is the most important event, with the help of which it is possible to analyze the structure of expenses, and based on its results, markup adjustments, production optimization and improvement of business processes are then carried out.
The calculation of this most important financial indicator can be made using various methods. The final choice of method depends on many factors. The parameter value must be displayed in the accounting documentation (financial performance report) and submitted to the tax service.
What is the purpose of the income statement?
The document is regulated job seekers data package and approved by the Ministry of Finance of the Russian Federation. It can be used to determine the commercial success of an enterprise. The information on revenue and expenses, the amount of profit (loss) contained in the report allows for a comparative and structural analysis of the company's business activities for the reporting period by calculating key specific indicators and making adjustments to the development strategy. The report on the financial results of an organization is filled out in one copy. Its preparation is not affected by the presence of separate branches and the tax regime. The source of information for entering into the document is data from accounting accounts 90, 91 and 99. The form contains a table in the cells of which the values of the indicators for the current and base periods are displayed. Depending on the values of the parameters, the units of measurement can be thousands or millions of rubles. The report provides fields for comments on the indicators.
What are the main cost items of trading operations?
When calculating the cost of sales, it is advisable to include costs directly related to the purchase of the product. The following costs are most often taken into account:
price of goods from the supplier;
logistics;
customs duties and fees;
value added tax (depending on the type of product);
organization of warehouse storage;
replacement of packaging;
wage fund for drivers, dispatchers, loaders and other personnel involved in handling goods;
marriage, losses and unexpected expenses.
How to determine income based on cost of sales?
Revenue is understood as the total income of the company from its main commercial activity. However, this indicator does not characterize the financial result of the organization.
To determine profit (or loss), you can use the value of such a parameter as cost of sales. Let's give an example:
Parameter name Amount, RUB
Revenue from drink sales 2,000,000
Cost of sales 1,200,000
Profit from sales 800,000
Taxes, interest on loans, depreciation 200,000
Net profit 600,000
There are cases when the costs of producing a product or service are less than the income from their sale. This means that the cost of sales is a negative value. The opposite situation indicates that the company is operating at a loss. It turns out that the company has two main ways to increase profits: reducing costs and increasing prices for manufactured goods.
Author of the article
Dmitry Svistunov
Dmitry Svistunov
Head of SEO and Development
Latest articles by this author