Question

What is Gross Profit + Cost of Materials Consumed?

Answer 1

The sum of Gross Profit and Cost of Materials Consumed gives the total Revenue from Operations, which indicates a company’s total revenue from its primary business activities before deducting operating expenses such as selling, general, and administrative charges. This is because Gross Profit is computed as Revenue from Operations minus Cost of Goods Sold (COGS), which includes Cost of Materials Consumed. Thus, combining them brings back the Revenue from Operations.