COS vs COP

dannytj

Hi guys,

I was told by my lecturers that if we are asked for Cost of Sales, include stocks and if we are asked for Cost of Production, do not include stocks, but working through the Jun 07 paper, this doesn't seem to be the case?

Is there an easy way of remembering when to include stocks?

D.

PGM

think you have it the wrong way round.

just think of it logically.

cost of sales is what you have sold, so it can't include anything you still have ie stock

cost of production, is everything produced ie sold or still in stock