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Determine the Traditional classification
a) Balance sheet or position statement ratios: balances sheet ratios deal with the relationship among two balance sheet item e.g., the ratio of current assets to current liabilities or the ratio of proprietors funds to fixed assets. Both the item must however pertain to the same balance sheet. The various balance sheet ratios have been named in the chart classifying statement ratios.
b) Profit and loss account or revenue/income statement ratio: these ratio deal with the relationship among two profit and loss accounts item e.g., the ratio of gross profit to sales of the ratio of net profit to sales. Both the item must however belong to the same profit and loss account. The various profit and loss account ratio commonly used is named in the chart classifying statement ratios.
c) Composite/mixed ratio or inter statement ratios: these ratios deal with the relation among a profit and loss account or income statement item and a balance sheet item e.g., stock turnover ratio or the chart exhibiting classification or statement ratios.
Explain Administration cost and Pre production costs Administration cost: The cost of formulating policy, directing the organization and controlling the operating of an u
2. Draw the network diagram for the following problem and indicate a sequence of plans that the company should want to consider in making a time-cost tradeoff. The company is not
Ratio analysis A ratio is a simple arithmetical expression of the relationship of one number to another. It may be explained as the indicated quotient of two mathematical ex
Q. Show process of Pricing under decline stage? In this stage the producer should follow the pricing strategy which may fetch revenue not less than its cost of production. If h
what are characteristics of relevant cost?
Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.
Elements of cost: 1. Material: the substance from which the product is made is known as material it may be in a raw or a manufactured state. It can be direct as well as indir
Factory Layout The first stage of implementing the JIT manufacturing techniques is to rearrange the factory floor away from the batch production functional layout towards a pro
Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t
Susan works in a real estate office that is equipped with up-to-date copiers, scanners, and printers. She is frequently the only employee working in the office in the evenings and
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