What is the formula for calculating gross profit? A. Revenue - Cost of Goods Sold B. Revenue - Operating Expenses C. Revenue - Total Expenses D. None of the above 相关知识点: 试题来源: 解析 A。计算毛利润的公式是收入减去销售成本。
Cost:The total cost (TC) of production is the sum of the total fixed cost and the total variable cost. The total variable cost is the sum of the variable cost incurred in producing each unit.Answer and Explanation: The fo...
What is the contribution margin for a sensitivity analysis using a variable cost per unit of $8? What is the relationship among fixed costs, contribution margin, and the break-even? What estimates are involved in the Weighted Average Cost of Capital formula? What does operating margin tell you...
You can use the advanced formula when you don’t know the total variable costs. Here, you have to replace the total variable cost with the average variable cost multiplied by the total units produced. Example #2: UltraSpeed Ltd. is a company that manufactures automotive components. As per t...
The average cost is calculated by dividing all the cost incurred for a process by the number of units produced. The inventory valuation and accounting process uses this concept to determine how much inventory storage is profitable, how much might lead to excess or wastage of resource, what is ...
This formula shows the cost of products produced and sold over the year. Method Two The cost of goods made or bought adjusts according to changes in inventory. For example, if 500 units are made or bought, but inventory rises by 50 units, then the cost of 450 units is the COGS. If ...
If your business is one that has multiple products, then it becomes very tricky for you to find a direct relationship between the product and the fixed costs incurred. In such a scenario, allocation or apportion of cost is done based on the profitability of each division. This, however, can...
What is Real Capital? How do I Choose the Best Working Capital Policy? What is Weighted Average Cost of Capital? What is Return on Invested Capital? Discussion Comments WiseGeek, in your inbox Our latest articles, guides, and more, delivered daily. ...
What Is WACC? WACC is the average after-tax cost of a company’s capital sources and a measure of the interest return a company pays out for its financing. It is better for the company when the WACC is lower, as it minimizes its financing costs. ...
What Is the Formula for Total Variable Cost? Because variable costs scale alongside, every unit of output will theoretically have the same amount of variable costs. Therefore, total variable costs can be calculated by multiplying the total quantity of output by the unit variable cost. ...