Answer:
Gross profit = net sales revenue - cost of goods sold. But what happens when your company doesn't sell any goods, specially if they only sell services and it is impossible to determine the COGS.
This is basically an accounting issue since the <u>IRS</u> defines COGS as:
- <em>The cost of products or raw materials, including freight </em>
- <em>Storage
</em>
- <em>Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products
</em>
- <em>Factory overhead the cost of inventory items sold </em>
So if your company doesn't sell any items from inventory, the IRS will not consider that your company incurred in COGS.
Reporting COGS is very useful for deducting business expenses, but it is not mandatory. Also, any expenses deducted as COGS cannot be deducted again as any other type of cost. So it is simply an accounting practice that helps certain industries to report their business expenses more clearly and in an orderly manner. But if it is too complicated to determine your company's COGS, then you can report your expenses in other ways and reduce your problems.
First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.
At age 18: 16,508
At age 19: 17,664
At age 20: 18,900
At age 21: 20,223
Then, we use this formula:
A = F { i/{[(1+i)^n] - 1}}
where A is the monthly deposit each year, F is the half amount of the tuition each year illustrated in the first part of this solution, n is the number of years lapsed.
At age 18:
A = (16508/2) { 0.04/{[(1+0.04)^6] - 1}} = $1,244.389 deposit for the 1st year
Ate age 19
A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year
At age 20:
A = (18900/2) { 0.04/{[(1+0.04)^8] = $1,025 deposit for the 3rd year
At age 21:
A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year
<span>There are several reasons that Troy might not be able to take advantage of an offered promotion. First, it could be that he is not able or willing to make the time commitment required by the new position. Second, it could be that Troy does not have the skills required to succeed at the offered position.</span>
$3,115,770 is the cost of goods sold for the company.
<h3>What are goods ?</h3>
In economics, "goods" are things that fulfill human needs and provide utility, such as to a customer buying a fulfilling product. Services that cannot be transferred and transferable products are two categories that are frequently distinguished.
When a good is helpful to people but is in short supply compared to demand, it is said to be a "economic good" and requires human effort to attain. Free things, on the other hand, like air, are always available and don't require any deliberate effort to obtain. Private goods include anything a person owns or uses on a regular basis that is unrelated to food, such as televisions, living room furnishings, wallets, cell phones, etc.
To learn more about goods from the given link:
brainly.com/question/12802278
#SPJ4
So you know how to get the most profit from sales
