G.p. ratio

DEAR MEMBERS I HAVE AN URGENT QUERY TO WHICH I SOUGHT YOUR RESPONSE. I am preparing a stock audit report for a bank in which there is this point of contention that in order to calculate G.P. RATIO for the purposes of calculating stock reconcilliation, whether all direct expenses should be considered or only expenses relating to purchase must be considered as in calculation of reconciliation only purchases are considered. As per my view the Gross Profit Ratio is a ratio which covers ALL Direct expenses & provide for profit. Please help me resolve the issue, your valuable guidance is awaited. Regards