What is difference between cost of sales and the cost of stock in a profit and loss account?



I think the difference is that cost of sales is the total of sales that the company has carried out, and cost o stock is the value of stock that it holds.

2 Responses to “What is difference between cost of sales and the cost of stock in a profit and loss account?”

  1. I don’t know but Starhub in Singapore got problem with the cost of sales and lost its profit margin with promised dividend.

  2. Cost of Sales is the cost of purchasing raw materials + Cost of manufacturing and preparing finished goods (includes labor, overhead, packaging etc.). Distribution and Sales costs are not included in this.

    Cost of stock is the cost of storage, handling, loss, damage, and obsolescence etc.

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