Compare and contrast the differences and similarities between Cost of Goods Sold and Net Profit.

Q: What does inventories /sales ratio mean?

A: An accounting metric used to measure liquidity, solvency, efficiency etc. of a business entity is…

Q: What amount should be presented as a deduction from cost of goods sold?

A: The GAAP principles require that the inventory should be valued at the lessor amount of its laid…

Q: Explain an example how to calculate gross profit percentage.

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: Define Gross Profit Method.

A: Definition:   Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Describe the difference between the units sold approach to cvp analysis and the sales revenue…

A: Sales can be defined as the source of earning to the business entity out of the sale of inventory…

Q: What is the Cost of goods sold equation?

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: Explain the concepts of revenue, costs, break-even and profit with examples?

A: These concepts are related to variable costing in which we use variable cost to compute our…

Q: Define the term profit Margin on Sales?

A: The profit margin on sales is the ratio of net income to sales. The profit margin on sales is…

Q: P/V Ratio is an indicator of [A] the rate at which goods are sold [B] the volume of sales [C] the…

A: P/V ratio also known as profit volume ratio is a ratio that determines the amount of profit attained…

Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…

A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…

Q: Define how costs of goods and other costs such as taxes contribute to the performance besides sales?

A: Performance of the business is usually measured by the ability of the company to generate the net…

Q: Describe two separate and distinct ways to calculate goods available for sale.

A: Goods available for sale is the cost of total units of finished goods (this includes both…

Q: What is meant by purchase return and sales return?

A: Purchase return:A purchase return is a transaction that occurs when the buyer of the goods (for…

Q: Problem 10 Indicate the effects of the following errors on cost of goods sold and net income.

A: Cost of Goods sold = Opening stock + Purchases - Closing stock Net income = Sales - Cost of goods…

Q: Which of the following is the correct calculation of selling price? O a. Cost + Mark-up O b.…

A: Selling price is price at which goods and services are sold to customer. This selling price includes…

Q: What are the main differences between a perpetual system  and a periodic system? In your…

A: In accounting, there may be different methods to record a financial transaction. The selling and…

Q: How to calculate gross margin and gross sales

A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…

Q: Explain the term Gross profit margin.

A: Profitability ratios: Profitability ratios are the metrics used to measure the profit generating…

Q: Explain an example how to calculate gross profit.

A: Gross profit is the left over revenue after deducting all direct costs of making the products or…

Q: s it always higher in cost of goods sold in Weighted average compared to FIFO?

A: Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis. In LIFO , cost of…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

Q: 1. What is the cost of goods available for sale? 2. What is the gross profit?

A: Cost of goods available for sale includes beginning inventory and net cost of purchases made. Gross…

Q: estion will save this respo I using: cost of good available for cost of goods sold, sales

A: The right answer is option d Gross sales, Sales return &allowances, sales discount

Q: What is the Cost of Goods Sold for the period?

A: The cost of goods sold is calculated as beginning finished goods inventory plus cost of goods…

Q: What are trade margins? How do they relate to thepricing for a produce, of goods?

A: A product is manufactured so that it can be sold to the consumer for the consumption purpose.…

Q: How much is the Net Purchases?   how much is the Net Cost of Goods Purchased? how much is the Cost…

A: Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

Q: Consider the following: Code: A = Gross profit to net sales ratio   B = Gross profit to cost of…

A:

Q: The difference between net sales and cost of goods sold is called (a) gross profit.(b) net…

A: Gross profit/margin: Difference between the sales and the cost of goods sold is called gross margin.…

Q: what is the estimated cost of goods sold & the estimated gross margin

A: The answer for the theory question on estimated cost of goods sold and estimated gross profit margin…

Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…

Q: Define Gross profit ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: i.) Determine the cost of goods sold using each of the following flow assumptions:

A:

Q: Find the Gross Profit

A: Direct costs are associated with the manufacturing of goods/services provided to consumers,…

Q: What are the major uses of the gross profit method?

A:

Q: Compute the following: a) Net sales revenue b) Cost of goods sold

A: Gross profit is the amount earned from selling the company's products or rendering services. It is…

Q: Compute the gross margin ratio and explain its use to assess profitability.

A: Gross margin ratio is the measure of profitability of the business and it depicts a ratio between…

Q: What is the difference between gross profit method & the retail method?

A: Gross Profit Method:-This method estimates the value of inventory by applying historical gross…

Q: Which of the following statements correctly complete the sentence: "Gross Margin equals": I.…

A: Sales revenue less cost of goods  manufactured  is wrong because  as per accrual concept, equivalent…