Hello Sir,
I would like to know how the Turnover of a company can be calculated ?
Does it includes both sales and purchase or only sales?
Please provide the valuable information by relating it to Textile manufactuiring and jewellery manufacturing.
SHARATH (ACCOUNTANT) (21 Points)
25 March 2017Hello Sir,
I would like to know how the Turnover of a company can be calculated ?
Does it includes both sales and purchase or only sales?
Please provide the valuable information by relating it to Textile manufactuiring and jewellery manufacturing.
Prity Agarwal
(CHARTERED ACCOUNTANT)
(363 Points)
Replied 25 March 2017
Turnover of a company = Cost of a product + profit earned on it.
It includes only sales.
In the case of textile manufacturing and jewellery manufacturing , turnover shall include the cost of the raw material and expenses incurred in it whether direct or indirect expenses for converting it from a raw material to a finished product.
Prity Agarwal
(CHARTERED ACCOUNTANT)
(363 Points)
Replied 31 March 2017
Yes, the total sales in a financial year
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