Please mention which stage you deduct the operating expenses(SG&A)?

Hi, It is a standard practice that you deduct SG&A expenses from Gross Profit. However, there is a tricky part here, as there are two P&L formats - by function and by nature. As we do not touch on this in the lesson, you can read more about it here: https://enstoncorp.com.sg/1/income_statement The idea is that SG&A expenses appear only in a P&L by function format, while we examine a P&L by nature format in this lesson. This is the reason why you don't see SG&A in the P&L. Yet, it is important for you to know that such type of expense classification exists. I hope this helps. Please let us know if you have any other questions. Best, The 365 Team

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Shivansh Kumar Kulpehra

Last answered:

07 Mar 2023

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02 Mar 2023

Resolved: You did not deducted the operating expenses(SG&A) from the net revenue to calculate the Net Income?

in Accounting and Financial Statement Analysis / Types of Costs

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Antoniya Baltova

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Posted on:

07 Mar 2023

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Resolved: You did not deducted the operating expenses(SG&A) from the net revenue to calculate the Net Income?

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