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Define the word profit in buiness?
Revenue over cost.
What are the examples of revenue reserves?
Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
What are the example of Revenues?
Revenue reserve is created out of revenue Profit . It is created out of Revenue Profit for exaple General Reserve, Dividend equalization reserve, Investment fluctuation reserve etc.
How can one determine the profit equation for a business or investment opportunity?
To determine the profit equation for a business or investment opportunity, one must subtract the total costs from the total revenue generated. The profit equation is expressed as Profit Revenue - Costs. This equation helps in analyzing the financial performance and potential profitability of a business or investment.
What are examples for responsibility centers?
cost center investment center profit center revenue center
A company that has a profit can increase its return on investment by?
Increasing sales revenue and operating expenses by the same percentage.
What is difference between cost center profit center?
Cost Center: it is that department of a company whose manager is responsible for cost spending only like production department.Revenue Center: it is that department whose manager is only responsible for revenue for example sales department.Profit Center: it is that department whose manager responsible for cost as well as revenue of department that department is called profit centre like "Autonomous Business Units".
How do you calculate a simpl roi?
To calculate a simple Return on Investment (ROI), use the formula: ROI = (Net Profit / Cost of Investment) x 100. First, determine your net profit by subtracting the total costs of the investment from the total revenue generated. Then, divide the net profit by the cost of the investment and multiply by 100 to express it as a percentage. This calculation helps assess the profitability of an investment.
What are responsibility centres?
The basis of a responsibility accounting system is the creation of a group of responsibility centre which is a subunit in an organization whose manager is responsible for specified financial results about the subunits designated activity. There are four common types of responsibility centres:Cost Centre: the manager of this subunit (department or division) is held accountable for the costs incurred by the unit. An example of a cost centre is the painting department in a car plant.Revenue Centre: the manager of this subunit is responsible for the revenue earned from the unit. An example of this is the sales department of a manufacturing company.Profit Centre: the manager of this subunit is accountable for the profit. But the nature of profits is that it is the difference between revenue and expenses, thus the manager is responsible for both these factors. An example of a profit centre is a company owned restaurant in a fast food chain.Investment Centre: the manager of this subunit is responsible for the profit and the invested capital used to generate profit within the unit. An example of this is the investment division of a large corporation.
Gross profit margin define?
EBITDA Earnings Before Interest Tax Depreciation and Amoortisation Also Revenue minus costs.
What are profit and investment centres?
Profit centres are measures of divisional performance. The performance measure is of course profit. The manager has the knowledge to set the correct prices and quantities as well as product mix. Investment centres are similar to profit centres but they have additional decision rights in terms of capital expenditure and investment. The manager is assumed to have better knowledge of input and output markets but also investment opportunities.
What is a net margin?
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
