--%>
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 : Explain the term Insolvent Explain the

    Explain the term Insolvent in brief associating to debt?

    		•
  • Q : Why farmers were angry at Railroad

    Why were farmers angry at the Railroad companies?

    		•
  • Q : Portfolio of Sharemarket SHAREMARKET

     SHAREMARKET ASSIGNMENT SHEET  - Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to

  • Q : Financial and Operational measures of

    State some of financial and operational measures MNC can take minimize the political risk linked with the foreign investment project?

    		•
  • Q : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

    		•
  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

    		•
  • Q : Fisher Effect and Purchasing Power

    Explain and discuss the significance of Fisher Effect and the Purchasing Power Parity theories to a foreign exchange dealer in the merchant bank?

    		•
  • Q : Micro-level theories regarding cause of

    Identify and elucidate three micro-level theories about the cause of deviance.

    		•
  • Q : Accumulated E&P (earnings and profits)

    Normal 0

  • Q : Ppe Question 3 The following

    Question 3 The following information is taken from the financi al statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had

    		•