Why Gross sales is important in a Company?

Q: Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in…

A: Cost Volume Analysis is a process of study of the relation between the costs of the product, volume,…

Q: Why is inventory management vital to the financialhealth of most firms?

A: Inventory management is significant to the financial achievement of most of the companies. Since if…

Q: Calculate the company's price earning ratio

A: Step 1 PE ratio is the ratio of earnings per share proportion to the market price per share.

Q: What is the differences between financial statements of a manufacturing and a merchandising…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: 2. How would components of Revenues and Expenses differ between a merchandise company versus a…

A: a. Merchandise Company - This company does buy and sells of inventory from suppliers to customers.…

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: Why is the level of and movement in the operating expense percentage an important indicator of…

A: Operating expenses are the expenses required for the operation of the business.

Q: Why are companies divided into departments for the purpose of management control?  Is it possible to…

A: An Organisation is a complex entity which requires different expertise in various fields to help it…

Q: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business…

Q: The formula "(Sales Revenue – Cost of Goods Sold) + Sales Revenue" produces:

A: The income statement represents the net profit or net loss of the company that is calculated by…

Q: How do the costs of doing business affect prices?

A: The cost of producing a product or service that a company sells is usually referred to as the cost.…

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: 1. The required sales in units to achive a target net income is? 2. What is the key factor in…

A: Contribution margin is the difference between sales revenue earned from a particular product and…

Q: Differnce between selling price,cost of sales,labour cost in informal business

A: The products are produced with different expenses incurred as variable expenses and fixed expenses.

Q: culate sales

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

Q: Name the accounting principle that requires inventories to be reported at sales price less…

A: Conservatism Principle This is the concept that you should record expenses and liabilities as soon…

Q: How is the profit margin on sales calculated?

A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…

Q: The difference between informal and formal business selling

A: Informal and Formal Business : Formal business is a business that is well formalised and its goals…

Q: What is the difference between the selling price,cost of sales and labour costs of an informal and…

A: The abbreviations CP and SP stand for Cost Price and Selling Price, respectively. The cost price of…

Q: What is operating profit margin?

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

Q: What is the nature of cost management and how beneficial it is for the business?

A: Introduction:   Cost management is the process of planning and controlling a business's running…

Q: How do we calculate cost of sales

A: The net sales are calculated as difference between sales and sales discounts.

Q: How does reporting information for a merchandising company differ from financial reporting for a…

A: Merchandising Company:   A merchandising company is a type of company that engages in the purchase…

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: Which of these is not an objective of Cost Accounting? O a. Ascertainment of Cost O b. Cost Control…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: How does past knowledge of profit and loss impact your perspective on company management?

A: This Question deals with how does past knowledge of profit and loss impact your perspective on…

Q: Explain how useful income based valuation in a business.

A: In income based valuation approach the company future value of the business can be estimated in…

Q: (a) How are the components of revenues and expenses different for a merchandising company? (b)…

A: There are generally two types of business organisations-merchandising businesses which sale goods…

Q: What factors explain the differences in company performance in the same industry?

A: For firms within the same business sector like Mcdonalds, Starbucks, burger king, etc in the…

Q: How to calculate cost of sales

A: Introduction: Ending Inventory: The unsold inventory for the period is called Ending Inventory.…

Q: Nature of the entity's business: For example, if the entity is a huge retailer having several…

A: Management accountant are those accountant who works within the company in order to present as well…

Q: Define profit oriented company.

A: Profit Oriented Company Profit oriented company are refer as the company which main aim is to earn…

Q: What is meant by customer-profitability analysis? Give an example of an activity that might be…

A: Customer Profitability Analysis:  It is the process of ascertaining the amount of revenue earned…

Q: What is cost principle and give example of business situation of it

A: The cost principle is an accounting principle that requires assets, liabilities, and equity…

Q: What is a company’s cost structure? How can cost structure affect a company’s profits?

A: Company's cost structure expresses the proportion of fixed costs to variable cost. Cost structure…

Q: the specific parts of a business plan will vary, depending on the goods or services the firm is…

A: A business plan is a document in writing that elaborates how a start-up company derives its…

Q: 1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Differentiate between selling price,cost of sales and labour costs in informal and formal business.

A: Registered (or unregistered), organized (or unorganized), and supervised (or unregulated) companies…

Q: How can you show how efficiency ratios can be used to determine the best way to conduct the…

A: Lets understand the basics. Ratios are calculated by the management to compare the company's current…

Q: What is the aim of dividing businesses into departments for the purpose of controlling management?…

A: The Answer:

Q: Define Profit margin on sales.

A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…

Q: Which of the following gives the basic factors of business operations of which their…

A: Cost volume profit relationship in the business says that there is a relationship exists between…

Q: Understand the components of a merchandising company’s income statement.

A: Preparations of income statements help the merchandise company to know how much gross profit or net…