Accounting Profit Formula Explained
Jennifer edwards Accounting profit formula is used to calculate profit that incurred after selling the goods. Profit can be defined as the difference between the cost price and the sale price of…
Target Profit Analysis
Sidra Farid Definition and Explanation of Target Profit: Target profit is the amount of net operating income or profit that management desires to achieve at the end of a business period. Management…
Gross Profit Ratio (GP Ratio)
Robert Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It expresses the relationship between gross profit and sales. Components: The basic components for the calculation of gross profit ratio are gross profit and net sales.Net sales means that sales minus…
Gross Profit Analysis (GP Analysis)
Gross Profit Analysis (GP Analysis): After studying this chapter you should be able to: Gross profit is the difference between the cost of goods sold and sales. Since the adherence of the actual…
Net Profit Ratio (NP Ratio)
Definition of net profit ratio: Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage. Components of net profit ratio: The two basic…