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How is a gross margin calculated?
the excess of the net sales revenue over the cost of goods sold.
What is the term describe the excess of sales over costs of sales which is expressed as a percentage of net sales?
sales over costs of sales which is expressed as a percentage of net sales, is referred to as...
What is a proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold?
[Debit] Cost of goods sold [Credit] Over-applied overhead
What is Accounting for over-the-counter sales?
Over-the-counter indicates to me that this is a type of Merchandising business. The accounting is really Merchandising Accounting. Accounts such as Revenue, Cost of Goods Sold, Inventory, all come into play. Merchandising company's also use such things as FIFO or LIFO inventory to keep track of the merchandise they are selling. Some examples of a Merchandising Company is Wal-Mart, Fry's Electronics, Grocery Stores, Clothing Stores, etc. These companies purchase "Inventory" at whole-sale prices, mark up the price to Retail, sales the merchandise and make profit off the difference. Whole-Sale price would be the COGS (cost of goods sold).
Does gross sales include sales tax?
No. The sales tax is posted as a credit to the Sales Tax Payable Account. So, if you had a $100 sale plus $5 sales tax, you would debit cash $105, credit Sales $100 and credit Sales Tax Payable $5 Sales taxes are a collection you make for the State. It is funds entrusted to you by the State to be paid over to them. They are not part of your sales or receipts. (Gross income will be sales less cost of sales. This is before selling, general, administrative, interest and tax expenses are taken out.)
How is a gross margin calculated?
the excess of the net sales revenue over the cost of goods sold.
What is the excess of net sales over cost of merchandise sold during the period?
gross profit (margin)
What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?
Gross Profit
What percentage of sales is the cost of goods sold for a typical small business and what is the average cost of goods sold for small business in the first year?
To find the percentage of the cost of the goods againt the actual sales is basically finding the profit. Therefore you will take the totals of the products sales and minus the cost of the product when you bought these in. The difference is gross profit minus any of the over heads of running the business). Then you this figure by the totals sales. i.e. 1000(total sales) - 500(cost of materials) = 500. 500/total sales (1000)x100 = 50% The avergae cost of goods sold in the first your is calculated by the total cost of materials / 12 (months) will give you an average. i.e. cost of materials was 500 / 12 = 41.66
How do you calculate percent of gross sales?
I'm I right by stating! % of cost = cost of sale divided by sales = % I want to use this in matrix. I want to make sure the selling price that we are going to charge (based on volume) is the right cost of sale %
What is the term describe the excess of sales over costs of sales which is expressed as a percentage of net sales?
sales over costs of sales which is expressed as a percentage of net sales, is referred to as...
Is the cost of goods sold equal to the cost of goods manufactured?
No. Cost of Goods Manufactured includes direct cost and factory over heads plus adjustments for work-in progress. Cost of goods sold includes COGM + factory expenses adjusted for change in stock of finished goods.
What is V ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
What is p v ratio?
The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit. Profit = Sales - Variable Cost - Fixed Cost. Thus Contribution is: Profit + Fixed Cost = Sales - Variable Cost. Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)
What is a proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold?
[Debit] Cost of goods sold [Credit] Over-applied overhead
What is actually the definition of plethora?
a plehora is an excess of goods; such as, "See the great plethora of fruit spilling out over the table and onto the floor."
What makes foreign goods more expensive?
Foreign goods are more expensive to purchase. The extra cost from purchasing foreign goods comes from the shipment of the goods over long distances.
