Define Return on sales

Q: What information is conveyed by a cost-volume-profit graph in addition to a company’s break-even…

A: Cost-volume-profit graph (CVP):   Cost-volume-profit graph is a graphical representation of volume…

Q: What is Day's-sales-outstanding ratio?

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

Q: net sales is

A: Net Sales is the Revenue that is reported in the profit and loss account of the entity  The formula…

Q: Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit…

A: Solvency refers to a firm's ability to meet its long term financial obligations or debt.

Q: Explain profit margin

A: Profit margin is one of the benefits proportions that's generally utilized to assess the level to…

Q: net sales

A: We know that  Net Sales = Sales revenue - Sales returns - Sales Allowances and Discounts

Q: assumptions for the sales growth.

A: An organization always tries to maximize its profit and perform better than earlier. In order to do…

Q: Describe the ways to increase sales and profitability

A: Sales indicate the revenue generated by the business entity in consideration of offering their…

Q: Define sales returns.

A: Sales:   It is the goods and services sold by one company to their customers for a period.

Q: List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return,…

A: Payback rule: The Payback period is the length of time required to recover the initial cost of a…

Q: PROFITABILITY RATIOS

A: Gross profit margin is stable for initial year but tends to reduce in future. Return on sales…

Q: Explain price/cash flow ratio

A: Answer: Price to cash flow is determined through the division of price per share by cash flow per…

Q: Analyze the profitability graph that illustrates the factors/accounts that are needed to calculate…

A: The profitability graph: The profitability graph depicts all the inputs that are needed to compute…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: decision maker. What amount should Taylor report as segment profit?

A: Answer - P406,000 should be reported as segment profit for Taylor.

Q: the dollar amount of sales needed to achieve a target operating income is computed by what

A: The break even sales units are the sales where business earns no profit no loss.

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: culate sales

A: Current month Ending Inventory Will be the next month beginning inventory.

Q: A manager who wants to determine the percentage impact on income of a given percentage change in…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Help question 28

A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…

Q: What is operating profit margin?

A: The operating profit is the profit earned during the year after deducting all the operating expenses…

Q: Is the cost of sales under weighted average always greater than the cost of sales in FIFO?

A: as FIFO method of inventory valuation goods purchased first will be used first or sold first. The…

Q: What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP…

A: Sales mix of a product is the proportion of a product sales in overall sales of the company. A…

Q: What is meant by the term sales mix?

A: Sales Mix: Sales mix is the relative proportion or ratio of a business's products that are sold.…

Q: How can a company track the extent of price discounting on a customer-by-customer basis?

A: Customer Profitability Analysis:Customer profitability analysis is the process of ascertaining the…

Q: Explain profit margin on sales

A: Profit margin on sales is calculated by using the following formula: Gross Profit/Sales Revenue*100…

Q: Define days sales outstanding (DSO). What can be learned from it?How is it affected by sales…

A: The average number of days in which a firm receives payments after the sale is done is a calculation…

Q: Explain sales cutoff tests.

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Sales return is a?

A: Suppose a manufacturing entity sales 10,000 units($50,000) of erasers to wholesalers, then the buyer…

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis -   generally cost volume profit analysis is used to determine the…

Q: Perform a profitability analysis

A: Profit is very important element of the business. Every business wants to have maximum profit in its…

Q: ) Calculate New Profit Sharing Ratio and Sacrificing Ratio

A:

Q: Calculate the effect on profit of a proposed change in ‘Sales Mix’ from the following data and also…

A: Sales mix should be such that the total contribution can be maximised. Which can be done by giving…

Q: Define the terms market value added (MVA) and economic value added (EVA).

A: The concept of economic value added was developed by Stern Stewart & co & is also known as…

Q: Describe the use of profitability index.

A: Capital investment analysis:   Capital investment analysis is the process by which management…

Q: Compute Sales (in units) for Product Y at Breakeven

A: Break-Even Point for a company for a particular product is the point where the company does not have…

Q: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

Q: Explain price/earnings (P/E) ratio

A: There are various types of ratios. some ratios are to know the hearing capacity or market price of…

Q: What is the value of Sales?

A: Sales: Sales represent the amount of goods sold during the year.  Sales comprise of all the costs…

Q: What is meant by the terms margin and turnover in ROI calculations?

A: ROI( Return on investment) is a performance measure used to measure the efficiency of an…

Q: Operating leverage measures the: Change in profit when sales changes. Change in Contibution when…

A: Solution: Operating leverage = Contribution margin / Net income  Therefore Operating leverage…

Q: Profit maximization

A: Introduction: The term financial management refers to the art of planning, organizing, directing…