--%>
Assignment Help - homework help

Real gross profit ratio and standard gross profit ratio

Is real gross profit ratio is bigger than standard gross profit ratio?

E

Expert

Verified

This is the question that we can’t resolve without getting real figure of gross profit and gross profit ratio. This is very simple to make any standard gross profit ratio. Assume that, I can guess gross profit ratio 20%. It is simple to compute however when real gross profit ratio is less than this, then our other planning might affect from this. At first, our net profit rate will affected and then the market value of company. Therefore, we can verify the variance of gross profit ratio only after computing gross profit ratio.

   Related Questions in Financial Accounting

  • Q : Prepare the journal entry to record the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance % uncollectible 0-30 days $674,000 0.5% 31-60 days 186,000 1.2% <

    		•
  • Q : Methods handling translation gains and

    How translation gains and losses are handled differently as per current rate method as compared to the other three methods, which is, monetary/nonmonetary method, current/noncurrent method, and the temporal method?

    		•
  • Q : Financial institutions & Economic growth

      It started with the US sub-prime mortgages on housing loans, which became worthless when home owners defaulted on their loans. The housing market promptly collapsed, wiping out Wall Street's revered investment banks and pull

    		•
  • Q : Accounting and Financial Management

    Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought

    		•
  • Q : Indirect world systematic risk Define

    Define and explain indirect world systematic risk.

    		•
  • Q : Letter of Credit What do you mean by

    What do you mean by Letter of Credit?

    		•
  • Q : Cash flows from operating activities A

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

    		•
  • Q : Factors for surge in the international

    List some factors which are responsible for recent surge in the international portfolio investment (IPI)?

    		•
  • Q : Darwin and Moths Conduct an internet

    Conduct an internet search by using the terms Darwin and Moths ("Darwin Moths", without the quotes). Learn about this famous illustration of Darwin's theory of natural selection, and write a brief paragraph describing it.

    		•
  • Q : Computing the credit rating List some

    List some of the factors does Standard & Poor’s analyzes in computing the credit rating it assigns a sovereign government?

    		•