Answered: Explain percent of sales method.

Business

Accounting

Explain percent of sales method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending…

A: Sales = (50 units x $120) + (25 units x $125) = $6000 + $3125 = $9125 Cost of Goods Available = (100…

Q: What is Day's-sales-outstanding ratio?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: The net profit margin ratio is calculated by dividing net sales by net income.

A: INTRODUCTION: The net profit margin calculates how much net income is earned as a percentage of…

Q: In generating a pro forma balance sheet, on what is the percentage of salesmethod based?

A: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the…

Q: How do you measure gross margin return on inventory(GMROI)?

A: GMROI is a measure of inventory profitability where, it measures how much profit does the sales…

Q: Explain an example of dollar value LIFO retail method.

A: Under this method, goods are combined into pools and all increases and decreases in a pool are…

Q: Sales data would be considered to be examples of __________ data. Multiple Choice ordinal interval…

A: Ratio data mean that quantitative data which can be written as percentage or ratio and can be better…

Q: How would I go about finding the previous reported sales, when I have the current sales and the…

A: Given: Current Sales Percentage increase in Sales

Q: Describe the difference between the unit-soid approach to the cvp analysis and to the sales revenue…

Q: How to calculate total selling expense

A: Selling expenses are the expenses incurred to sell a product to the customer.

Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…

A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000

Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…

A: The profit volume ratio is also known as contribution margin ratio.

Q: Calculate Sandhill's net sales, cost of goods sold, and gross profit for these sales. Net sales Cost…

A: Gross Profit = Sales - Cost of Goods SoldGross Profit is derived by deducting cost of goods sold…

Q: Determining the transfer price as the price at which the product or service transferred could be…

A: Transfer pricing relates to the procedure used to establish the price of products or services traded…

Q: Distinguish between gross profit margin, operating profit margin, and net profitmargin and provide…

A: To distinguish between the gross profit margin, operating profit margin, and net profitmargin and…

Q: Name the accounting principle that requires inventories to be reported at sales price less…

A: Conservatism Principle This is the concept that you should record expenses and liabilities as soon…

Q: : The difference between total sales revenue and total cost of goods sold is the Group of answer…

A: Trade margin = Total sales revenue - Total cost of goods sold

Q: compute the gross profit percentage

A: Gross profit: It implies to the excess of company's net sales over the cost incurred on goods sold…

Q: Identify the importance of marginal and absorption costing on profit determination and inventory…

A: In the costing method known as marginal costing, the fixed cost for the period is entirely written…

Q: Which one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: What impact has a JIT inventory system on operating income?

A: JIT or just-in-time is a stock administration technique in which material, labor and products (to be…

Q: How to get or compute the gross sales

A: Gross sales is presented in income statement.

Q: Mark up can be calculated by the formula; a. Markup = Cost + Expenses b. Markup = Cost + Profit c.…

A: Markup refers to the difference between the selling price of a good or service and its cost

Q: Explain the Sales Comparison Approach?

A: Sales comparison approach is comparative market analysis that compares a property to other…

Q: How do I get the sales formula?

A: Sales is the total revenue earned by the business from the inventory sold during the period.

Q: Explain unit sales.

A: Sales: Sales means the goods and services sold by one company to their customers for a period.

Q: Which of the following is the correct calculation of selling price? O a. Cost + Mark-up O b.…

A: Selling price is price at which goods and services are sold to customer. This selling price includes…

Q: What is the proper accounting for volume discounts onsales of products?

A: Volume discounts: It is an incentive to encourage for an increase in business. The seller issue…

Q: The of each product's sales to. O selling price, profit O unit price, expense O ratio, total sales O…

A: Sales mix refers to the combination or proportion of different products or services that a company…

Q: Which of the following is the correct calculation of rate of mark-up on selling price? a.…

A: Rate of Markup on Selling Price:-Sales price minus the unit cost that divides that number of unit…

Q: Gross profit from sales is the difference between

A: Gross profit means the excess of revenue against the cost of good sold from the operating activity…

Q: What methods are used to forecast sales?

A: Historical Sales Data Analysis: This method involves a detailed analysis of past sales data to…

Q: What is the preferred order of reconciliation? cost, sales, income O income, cost, sales sales,…

A: Income is defines as total costs of the project deducted from total sales from the project.

Q: Explain profitability ratios

A: SOLUTION:- A profitability ratio is a measure of profitability, which is a way to measure a…

Question

Explain percent of sales method.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Explain the drawing Financails Sales Expenes profits
Are net sales = Sales less?a. Sales returnsb. Sales discountsc. Sales returns & allowancesd. Sales returns & allowances and sales discounts
Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write an “X” on the appropriate and explained Effects in Gross Profit Favorable Unfavorable A. Volume - Increase - Decrease B. Selling Price – Increase - Decrease C. Unit Cost - Increase - Decrease
How do you calculate gross profit as a percentage of sales?
The gross margin estimation method estimates the cost of goods sold by multiplying the costs to sales ratio by purchases. O multiplying the sales revenue by the inventory turnover ratio. multiplying the cost of goods available by the gross margin percentage. O multiplying the sales revenue by cost-to-sales ratio.
How should you compute the number that appears as "cost of good sold" in a common-size income statement?
Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit by sales.The formula to calculate the gross profit ratio is as follows: Gross profit = Gross profit/sales Gross profit is calculated using the following formula: Gross profit= Sales-Cost of Goods Sold To choose: The correct term for excess of sales over the cost of goods sold.
Write the formula of the Price to Book Value Ratio and explain how a result of 2 should be interpreted.
Define and describe the differences between a sales return and a sales allowance
What are the three approaches to calculating the sales required to achieve the target profit? Give the formula for each one.
The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False why?
The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross profit as a percentage of cost and gross profit as a percentage of sales price and how do you convert the gross profit % based upon cost to gross profit % based upon selling price?