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Why would a company want to know their min amount of profit on a certain product?
Wiki User
∙ 6y ago
They may be looking for ways to increase the profits on it. They may need to know how much they can afford to spend on things like raw materials or wages, and make a profit on an item.
Wiki User
∙ 6y ago
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Difference between net profit and turnover?
Net Profit is the profit determined by a company after deducting the cost of product plus the cost of carrying the prdt from the gross received amount. While turnover of a company represents the total volume of sales a company does .It includes the cost price of the product plus the profit.
What causes the difference between actual and budgeted gross profit?
Budgeted gross profit is the expected profit amount before the start of production run while actual gross profit is the actual amount of profit which company earns after the production and sales of product.
Who is an investee company?
investee company is one in which other entity injects a certain amount and expects some profit\loss in return
What is the cash flow of a company?
A company's cash flow is the amount of cash (or income) that goes into a business. Cash usually comes from a product or service that a company sells for profit.
The difference between profit and wealth?
Profit is the amount made for as company on the sales of a product or service after taxeswealth can be an amount which is not earned i.e. lottery win, shares sold making money for shareholder, inheritance or accumulated wages from working
What is the definition of a companys cash flow?
A company's cash flow is the amount of cash (or income) that goes into a business. Cash usually comes from a product or service that a company sells for profit.
If a company makes a 2.00 profit on a product selling for 10.00 If you sell 50 units of the new product how much profit will you make?
$100.00
What is a positive return on capital?
A positive return on capital is a profit. When the sales of a product are greater than the cost of producing the product, the company will make a profit.
Why does the gross profit increase when the value of closing stock increases?
It doesn't. Gross profit is the of a company is the profit it receives for the product or service produced after the cost of that service or product. It does not take into account any other expenses incurred by the company. Net profit takes this into consideration. Price of stock can increase or decrease the available money for a company to invest or use for generating income.
What is a product of a company?
A Product of a company, is what they make and, or sell for profit. every company has some sort of product or service to make money, companies that sell products, for example are Kirkland, Jimmy Deans, even McDonalds .
What is impact of quality on profit and loss?
it basically means taking into consideration how weathered or damaged a product is and whether it will bring your company a profit or a loss.
A normal profit is considered a cost because?
This is the amount required to ensure continued supply of the product.
