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Does positive revenue ensures positive profitability when the cost of goods sold is less than revenue?

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Question added by Ashraf Alsinglawi , Medical Supply Chain Planner , International Committee of the Red Cross
Date Posted: 2013/11/22
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

NO way

It okay if your CGS is less but what about Selling General and admin expenses?

Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Positive revenue doesn't ensure possitive pofitability when the cost of goods sold is less than revenue. Other cost components (such as indirect costs, assets depreciation, total manpower cost, and warranty costs) must be caculated in order to verify positive profitability.

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