Had a disagreement with my IT teacher today... Can OCuK tell me who was right?

asim18

asim18

asim18

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Ok, so my IT teacher seems to think that:

"Price of Item - Cost of Delivery to Customer = Profit/loss"

So "£4.95 - £5.00 = £0.05 Loss"

I asked him weather the Customer was paying the "£5" for the delivery cost, and he said "yes, the customer is paying for both the Item and Cost of delivery".

Then I told him "How can there be a loss, if you're only receiving income?"

In response, he started giving me extremely stupid unrelated scenarios.

Then I responded "Sir, I still don't understand how that can be possible, but never mind".


So who's right?


Oh and he didn't seem to understand the assignment sheet very well.
When I asked him to see if I'd done "number 7" correctly, he replied, "Oh no, forget all that, just find out the profit and you're done.:eek:"
 
.......Ok, I'll ask first. Why were you doing a maths/general knowledge/business question in IT?

And yes, you are right in this situation, but I'd like to think there was a misunderstanding somewhere.
 
Inazuma said:
.......Ok, I'll ask first. Why were you doing a maths/general knowledge/business question in IT?

And yes, you are right in this situation, but I'd like to think there was a misunderstanding somewhere.
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It was a spreadsheets assignment, so we we're doing simple formulas in excel.
 
If you are the seller then your gross profit is equal to:

Sales - Sales discounts - Cost of goods sold = Gross Profit

your net income is equal to

Gross profit - Transportation out - operating expenses - Selling expenses = Net income

Transportation out is with regard to FOB Destination where I PAID for shipping and thus it is counted in my inventory until it is delivered. Since the BUYER paid for shipping it is counted as FOB Shipping point and the goods are his as soon as they leave the sellers warehouse. The buyer paid for the shipping and thus he arranged for a courier, you are simply an agent who passed the monies onto the courier.

In this case it would be 4.95 - 0 as we assume you have no operating or selling expenses and you are not paying for shipping. but of course this is actually just Sales Revenue as without knowing COGS we dont know Net Income or gross profit.

We can conclude your IT Teacher is a fag, and you can tell him I said that.
 
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If your teacher still insists on being a fag then you can assume you do pay for shipping. so:

Accounts receivable - Debit 9.95
Revenue - Credit 9.95

Transportation out = 5.00

Revenue(9.95) - COGS (unknown but assume 0) - TO(5.00) - Expenses (0) = 4.95 Net profit or net income.

Further proof your teacher is a homo.
 
Inazuma said:
.......Ok, I'll ask first. Why were you doing a maths/general knowledge/business question in IT?

And yes, you are right in this situation, but I'd like to think there was a misunderstanding somewhere.
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Also in a HNC/HND maths is part of the course, depending on any previous maths grades you have.
 
I think that your both right and that the said equation is ambiguous and thus open to various interpretations.

Equations cannot be ambiguous therefore the equation is inaccurate and thus wrong.

Smiley faces for you and IT teacher. :):)
 
Dev2 said:
I think that your both right and that the said equation is ambiguous and thus open to various interpretations.

Equations cannot be ambiguous therefore the equation is inaccurate and thus wrong.

Smiley faces for you and IT teacher. :):)
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You do know that is nigh on the same equation every accountant the world over uses. Im sure of it's good enough for CIMA, CPA, MCA, and MAcc's then it's good enough for some dumb ass IT teacher.
 
Killa_ken said:
We can conclude your IT Teacher is a fag, and you can tell him I said that.
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LOL Killa Ken always makes me laugh :D

If only everyone were as funny. Some people on the other hand, cough Ben M cough, make me want to just headbutt a pencil and make me die a little inside each time I see them post :(
 
Profit and loss are all shown on the balance sheet of a company and you have to take into account assets and liabilities as well as fixed costs and what not.

your "teacher" is wrong, but you can make a loss if you only receive income, they are called loss leaders or may even be items in a sale.
 
aproctor said:
Profit and loss are all shown on the balance sheet of a company and you have to take into account assets and liabilities as well as fixed costs and what not.

your "teacher" is wrong, but you can make a loss if you only receive income, they are called loss leaders or may even be items in a sale.
Click to expand...


I thought it was only assets, liabilities and equity were shown on the Balance sheet?


Edit: Wait net income goes into equity which i guess is the same thing.
 
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