--%>
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 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

    		•
  • Q : What is Assets in Accounting Assets are

    Assets are those resources that the business owns. Assets are the things of value owned which enable the firm to get cash or befit in future. There are mainly two types of assets: - Current assets & Fixed assets for e.g. cash, f

    		•
  • 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 : Canadian Outdooring Explain Canadian

    Explain Canadian Outdooring in brief ?

    		•
  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

    		•
  • Q : Credit Claims How to handle the Credit

    How to handle the Credit Claims?

    		•
  • Q : Project Advantages-disadvantages of

    Advantages-disadvantages of internal rate of return method

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

    Normal 0

  • Q : Accounting Acquisition Entry and

    Acquisition Entry and Consolidation Working Paper On January 31, 2014, Phoenix, Inc. acquired all of the outstanding common stock of Spark Corporation for $400 million cash plus 25 million shares of Phoenix' $10 par value common stock having a market value of $90 per share. Registration fees were $

    		•
  • Q : Book-value method of accounting for

    The stock is recorded at the book value of debt. The convertible debt is removed at the book value, the number of share times par is added to the stock account, and the remaining amount is plugged in to additional paid in capital. Contrast with the market value in whi

    		•