ATAR Notes: Forum

HSC Stuff => HSC Humanities Stuff => HSC Subjects + Help => HSC Business Studies => Topic started by: LoneWolf on March 23, 2020, 08:28:50 am

Title: Is total expenses, expenses + COGS?
Post by: LoneWolf on March 23, 2020, 08:28:50 am

Hey

when they say total expenses, is that expenses + COGS?
I mean in the expenses ratio, = total expenses/sales

As an example, HSC: 2015 Q  16/17

Title: Re: Is total expenses, expenses + COGS?
Post by: Grace0702 on March 23, 2020, 12:31:25 pm

No, expenses are separate to COGS, so when you are given a question like in the HSC 2015 paper total expenses will just be the expenses listed in the table. When you look on an income statement you will see that expenses and COGS listed in two separate areas, and that total expenses is all of the expenses added together.

So total expenses = sum of all expenses (COGS is not considered an expense in this case)

Hope this helps :)

Title: Re: Is total expenses, expenses + COGS?
Post by: LoneWolf on March 23, 2020, 12:44:08 pm

Thanks Grace.
very helpful.