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For trading company, it is simple to calculate the cost of sales. The material purchase price and any other cost relating to material purchase for example custom duty, transportation cost, insurance cost etc. relating to material purchase will be included.
On the other hand for manufacturing company, the cost calculation is little complicate where cost of material (including duties, transports, insurance etc), labor cost, overhead (depreciation, electricity etc.) will be included which converts the product into marketable condition.
