Management Accounting Fundamentals: Asset Management Ratios

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Asset Management Ratios

Firms or companies measure on how it uses its asset to generate revenue and income using Asset Management Ratios

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There are eleven (11) types of ratios covered.

Finished Goods or Merchandise Inventory Turnover

FORMULA SIGNIFICANCE

Cost of Sales

Average Inventory Shows if the firm holds excessive stocks of inventories that are unproductive and that lessen the company's profitability.


	MAFundamentals defines the foundation of Management Accounting from cost concept, classification and analysis. It provides general discussion on COST, VOLUME, PROFIT, VARIANCE and other information necessary for performance measurement, decision making and pricing.

FORMULA	SIGNIFICANCE
Cost of Sales Average Inventory	Shows if the firm holds excessive stocks of inventories that are unproductive and that lessen the company's profitability.