Estimation of cost of goods sold in a manufacturing firm / Neerav Nagar.

Format:

Book

Author/Creator:

Nagar, Neerav, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Cost accounting.

Profit.

Industrial management--Case studies.

Industrial management.

Physical Description:

1 online resource.

Place of Publication:

London : Indian Institute of Management, Ahmedabad, 2020.

Summary:

Indian Accounting Standard (Ind AS) 1 and Schedule III (Division II) to the Companies Act (2013) mandate that Indian firms should report expenses in the Statement of Profit and Loss (also known as the Income Statement) by nature (for example, raw material consumed, employee costs, etc.). This contrasts with the reporting of expenses by function (for example, manufacturing, selling, etc.) that is done by several companies in the United States. While the first method gives useful information to users of the financial statements, it fails to clearly indicate the efficiency of the manufacturing function in a firm in terms of gross profits, which is the difference between revenues and manufacturing costs i.e. cost of goods sold (COGS). This exercise explains how to calculate COGS and gross profits for an Indian manufacturing company-Dabur India Limited using the information given in the annual report. The process of calculation leads to interesting debates on what the right number should be. The discussion also critically analyzes a voluntary disclosure on COGS by the company.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

1-5296-1972-6

9781529619720

OCLC:

1362530271