MGTA02H3 Lecture Notes - Lecture 9: Income Statement, Earnings Before Interest And Taxes, Variable Cost
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MGTA02H3 Full Course Notes
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Show 16350 cost of making the product. Show: 16350 in - 16350 out = profit: like a movie . E. g. for the fiscal year ended 31 march or for the 12 months ended 31. Revenue or sales: purpose of business: satisfy customer needs. Revenue or sales shows business doing something right. Revenue (sales) growth: revenue should increase year-to-year. Cost of goods sold: the next line an income statement: Cost of goods sold or cost of sales . Cost of materials and labour that go directly into making the product(analogous to variable cost in b/e analysis) Gross profit: revenue - cost of sales = gross profit, gross profit = profit from making & selling product. Operating expenses: also called: selling and general expense. Operating expenses: the cost of running business(vs. cost of making product) (analogous to fixed cost in b/e analysis) (analogous to fixed cost in b/e analysis)
