--%>
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 : What is Account What is Account .

    What is Account. Explain briefly.

    		•
  • Q : Trends in international business

    Explain three important trends which have prevailed in the international business during last two decades.

    		•
  • Q : Progressivism and the womens rights

    What was the link between progressivism and the women’s rights movement?

    		•
  • Q : Flexible and fixed budgets Give a brief

    Give a brief contrast between flexible and fixed budgets?

    		•
  • Q : What do you mean by the term turnover

    What do you mean by the term turnover?

    		•
  • Q : Creative thinking & Problem solving

    General Instructions: In composing your responses to all tasks, please use full sentences and pay careful attention to spelling, grammar, punctuation, and clarity of expression. Both the content of your work and its present

    		•
  • 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 : Forward cross-rates in German terms

    Compute 30-, 90-, and 180-day forward cross exchange rates between German mark and Swiss franc by utilizing the most recent quotations.  Specify forward cross-rates in “German” terms.

    		•
  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

    		•
  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash

    		•