what is cost of revenue from operations and revenue from operations? Related: Concept & Classification of Accounting Ratios - Class 12, Accountancy

Question

what is cost of revenue from operations and revenue from operations? Related:  Concept & Classification of Accounting Ratios - Class 12, Accountancy

Answer

Cost of revenue from operation Means how much cost is there and revenue from operation Means selling cost

Answer

Cost of revenue from operations refers to the direct cost incurred in producing and delivering a product or service. This includes expenses such as materials, labor, and shipping. Revenue from operations, on the other hand, refers to the income generated from the sale of products or services.

The concept of cost of revenue from operations and revenue from operations is important for understanding a company's profitability. By comparing these two figures, investors and analysts can assess how efficiently a company is operating and how much profit it is generating from its core business activities.

Answer

Cost ot Revenue, .For this let me revise you, what are the activities of a business. .There are braodly 2 types of Activities Of a business ,which are. .1 . Revnue Activities : Trading, selling etc. This activities are those activities for which the bisiness is running, business earns Profits from this activities.
.2 . Non -Revenue Activities : This are those Activities for which specifically Business is not setup. For example : Sale of furniture, The business is not setup for selling it's old furniture and earn money. Business earns Gain in this case.
.Now, come back to the question, Revenue profit is earned through revenue opertaions, and now It should be right if we say sales instead of Revenue operation, so if a business is selling something ,there must be some cost of that sales, i.e cost of those commodities,like : If a person is selling an Apple for 100 ,but he had buyed it for 90 ,than he's 'Gross Profit' will be 10 but 'cost of Revenue from operation 'will be 90 .Just Relate it with, SP and CP,which we had studied in class 7/8..Note : Indirect Expenses (Electricity charges, salary etc) are also Deducted (i.e in Profit and loss A/C) To find out the 'Net profit' ,which is different case.

Answer

Cost of revenue from operation is the amount of the actual price of a good and revenue from operations are sales which means cost of good including profit

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