Return on Sales (ROS) measures a company's operational efficiency by calculating the percentage of revenue that remains after all operating expenses are deducted. It indicates how well a company converts sales into profits, providing insights into pricing strategies and cost management. A higher ROS suggests better profitability and operational effectiveness, while a lower ROS may indicate challenges in controlling costs or generating sufficient sales revenue. Overall, ROS is a valuable metric for assessing a company's financial health and performance relative to its peers.
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
Rate of Return on Net Sales = (Net Income) / (Total Sales)
yes
Total sales - cash sales - sales return
sales+sales return=net sales
[Debit] Sales return [Credit] Cash /bank [Debit] Sales [Credit] Sales return
sales is when u sale it dimwitt and sales return is when u return it dumbie
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
Return on sales = 814100 / 9275000 = 8.777 %
Rate of Return on Net Sales = (Net Income) / (Total Sales)
Cash Ac Dr to Sales AC To sales Return Alc
[Debit] sales return [credit] cash / bank
yes
no
[Debit] Sales Return account [Credit] Cash account
When the sold items are returned back to the seller by the customer then, it is Sales Return for the seller.
Total sales - cash sales - sales return