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QuestionsCategory: Financials QuadrantCOGS and SGA for telcos
Qi Jie asked 4 years ago

Hi , currently I am doing an analysis for Singtel. I find it confusing using the excel for COGS and SGA. 
I saw the previous post similar to this issue and Victor recommend using staff cost, traffic expenses and cost of equipment sold to determine the COGS. 
If that’s the case, what about SGA? What should I add? I am thinking of adding the remaining operating expenses items, which includes:
1 Selling and administrative cost
2 Other cost of sales
3 Repairs and maintenance 
4 Depreciation and amortization (According to the vid)
 
Hope to have some advice and to clarify the issue. Thank you.

1 Answers
Victor Chng answered 4 years ago

Hi Qi Jie,
 
Singtel is more of a service based business as compared to product based business which have COGS. To make things simple, I think you can ignore COGS which means you don’t calculate the gross profit margin and put all the cost under SGA.