Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

What will be the cost of revenue from operations if Revenue from Operations is ₹9,00,000, Gross Profit is 25% on sales, and Operating Expenses are ₹90,000?

Options:

₹675000

₹765000

₹775000

₹658000

Correct Answer:

₹675000

Explanation:

Cost of revenue from operations = Net revenue from operations - Gross profit
                                               = 900000 - 25% of 900000
                                               = 900000 - 225000
                                               = ₹675000