(1)
Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compared with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.
To compute:
The gross profit ratio for company-A for the years 2016 and 2017.
(2)
Gross margin ratio means that ratio which shows the profitability of the company. This ratio is compare with the sale and gross profit. Indirectly this ratio shows the cost of goods sold percentage. Gross profit shows that the difference between the sale and cost of goods sold.
To compute:
Calculate the gross profit ratio for company-B for the last two year 2016 and 2017.
(3)
Cost of control is the normal practice that identify the business expense and continue the control the expense and increase the profit as possible. Before the control the expense prepare a proper budget then identify.
To compare:
Compare the result for the company A and company B of cost control in 2017.
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Managerial Accounting
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