What is net cost, net sales, and net revenue

Question

If I have two products. Those products are shirts and shoes. Please see the image.

If I want to calculate the net cost then do I add the all the costs for the shirts for every year, which will give me 60 dollars or do I add it by product by year, so for year 1 (shirts and shoes), it will be 50 dollars. I am confused, when it says find net cost. Similarly, I can do net sales. But, then what about net revenue?

score 0 · Accepted Answer · answered Oct 20 '16 at 16:01

0

If you want Net Cost of 'Shirts', add the 'cost' of shirts for the 3 years. If you need the net cost for year y, add the cost of shirts and shoes of year y. If net cost is asked, net revenue and net sales are irrelevant. You are to give cost only. If nothing is mentioned (i.e. Find Net Cost), give the sum of the costs of both shirts and shoes, of each year.

answered Oct 20 '16 at 16:01

Ishan Manchanda

141

But, I add the numbers, right? That's the way to calculate the net cost, right? – Ted Oct 20 '16 at 16:05
And net revenue is net sales - net cost? – Ted Oct 20 '16 at 16:06
@Ted Yep! Revenue is just the profit and profit = Sale-Cost! P.s. if you think the answer is satisfactory, mark it as accepted :D – Ishan Manchanda Oct 20 '16 at 16:14

What is net cost, net sales, and net revenue

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