how is: Production=sales+closing stock-opening stock
plz explain me in detail
2007-02-14 01:38:34 · 4 answers · asked by Anonymous in Social Science ➔ Economics
Assume we are dealing with one day. The opening stock is what you have on hand at the start of the day. The closing stock is what you have on hand at the end of the day. Sales is stock that is removed from the business during the day.
So, closing stock - opening stock is the difference in stock on hand during the day. But you also have to add stock that as left the premises during the day. So the total difference in stock during the day is closing stock + sales - opening stock. This is either the purchase or the production during the day. I hope this helps.
2007-02-14 02:51:01 · answer #1 · answered by Elizabeth Howard 6 · 1⤊ 0⤋
opening stock 0
production 100
sales 100
t.f closing stock 0
so sales 100+ c/s 0 - o/p o -- production 100
2007-02-14 02:45:26 · answer #2 · answered by ayal p 3 · 0⤊ 0⤋
PROFIT = (Sales +Closing Stock)- (Opening Stock+Purchases)
2007-02-14 02:02:35 · answer #3 · answered by AVANISH JI 5 · 0⤊ 0⤋
Then what is the closing stock for a new business
2016-05-23 22:02:22 · answer #4 · answered by ? 3 · 0⤊ 0⤋