Calculate Cost of Revenue from Operations from the following information: Revenue from Operations ₹12,00,000; Operating Ratio 75%; Operating Expenses ₹1,00,000.
Operating Cost = 75% of Net Sales = 75% × 12,00,000 = ₹9,00,000
Operating Cost = Cost of Revenue from Operations + Operating Expenses
9,00,000 = Cost of Revenue from Operations + 1,00,000
Cost of Revenue from Operations = ₹8,00,000
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.150 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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