The manufacturing process goes through three stages: raw materials, work-in-progress and finished products. The calculation of total manufacturing costs, also known as the cost of goods sold, involves the accounting of costs for each phase of production. Tip The calculation for total manufacturing ...
Return on total assets (ROTA) is one of the profitability indicators that measures how efficiently the firm manages its assets to earn profits. Its formula is a simple ratio of the Operating Profit to the Average Assets of thereturn on total assets ratiodetermines companies that are using their...
Total sales are also referred to as “total number of units sold” or “Total sales revenue.” It's one of the easiest KPIs to measure and understand, but it's also one of the most difficult ones to improve. Of course, a company will always have some number of sales, however, increa...
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Business Accounting Cost of goods sold a. Define prime cost and conversion cost. b. Why can't prime cost be added to conversion cost to...Question: a. Define prime cost and conversion cost. b. Why can't prime cost be added to conversi...
This is the relevant data from the balance sheet and income statement of the Hasty Hare Corporation without any debt: Revenue: $1,000,000 Cost of goods sold: $600,00 Administrative expenses: $200,000 Interest expense: $0 Pre-tax profit: $200,000 ...
Answer choice: True Explanation: Total costs equals fixed cost, which remains the same in total, plus total variable cost. Variable cost changes as units sold changes. Total variable cost equals unit variable cost times the units.Become a member and unlock all ...
Add all of the above per unit cost, the total variable cost per unit. Take out the number of units actually produced and not just sold. Now multiply the number of units produced by variable cost per unit. Examples Let us have a look at the instances below to understand the total variabl...
What's the difference between the cost of goods sold and revenue of goods sold? Calculate the money multiplier. What is the difference between the retained earnings number of the income statement and the balance sheet? How do you determine whether states have achieved maximum revenue or not? Wh...
To find total utility economists use the following basic total utility formula: TU = U1 + MU2 + MU3 … TU = Total Utility U = Utility MU = Marginal Utility The total utility is equal to the sum of utils gained from each unit of consumption. In the equation, each unit of consumption...