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.
Showing posts with label Cost Management Ratios. Show all posts
Showing posts with label Cost Management Ratios. Show all posts

Cost Management Ratios

One method of Financial Ratio Analysis, Cost Management Ratios measures how well is the control of the company's cost.


  1. Gross Profit Rate (or Gross Profit Percentage)
    FORMULASIGNIFICANCE
    Net Sales - Cost of Sales

    Net Sales
    Measures how much can be spent for marketing, R&D, and administrrative costs while still reaching target income.