Classification of components of operating expense - Wholesale and retail trade

2 - Cost of goods sold

Refers to the cost value of goods sold and recognized in revenue, during the reporting period. It is determined by calculating: Opening inventory + Purchases - Closing inventory.

21 - Opening inventory

Refers to inventory on hand at the beginning of an accounting period (at book value).

22 - Purchase

Refers to the value of total net purchases of goods (gross value less returns, adjustments and discounts) at delivered price (including freight-in, insurance, import duties and other related specific costs). This includes new and used goods purchased for resale, as well as direct labour costs and other direct costs for those business units carrying on secondary activity of a manufacturing nature.

23 - Closing inventory

Refers to inventory on hand at the end of an accounting period (at book value).