Arrange the given items in proper order

(A) Finance cost

(B) purchase of Stock in Trade

(C) Cost of material consumed

(D) Employee Benefit Expenses

Choose the correct answer from the options given below:

The question asks for the proper order of items as they appear in the Statement of Profit and Loss under Schedule III of the Companies Act, 2013.

As per Schedule III, the expenses are arranged in the following sequence:

1. Cost of materials consumed (C) - This appears first among the given items as it relates to manufacturing/production expenses
2. Purchase of Stock-in-Trade (B) - This comes immediately after cost of materials consumed, representing trading goods purchased for resale
3. Employee Benefit Expenses (D) - This includes salaries, wages, and other staff-related costs
4. Finance cost (A) - This appears towards the end, representing interest and other borrowing costs

The correct sequence is: (C), (B), (D), (A)

This order follows the natural flow of expenses in the Statement of Profit and Loss, starting with direct production/trading costs, followed by operating expenses, and finally finance costs which are considered as non-operating expenses.

Correct Answer: Option 4