Category Archives: ACCOUNTANCY

Definition of Efficiency Ratio, Types and Examples

This article will be a guide to the efficiency ratio formula. In this article we discuss formulas for calculating efficiency ratios along with practical examples. Understanding What Efficiency Ratio Is Efficiency Ratio or efficiency ratio is a measure of how well the company manages its routine affairs. Conceptually, this ratio analyzes how well the company uses… Read More »

Explanation of Inventory Cost

The meaning of inventory cost Inventory means goods- be it finished products or raw materials / raw materials, for sale, or for personal use by the business entity at a time. Inventory consists of three elements – raw materials to be used in the production process, goods in process or incomplete goods in the production process,… Read More »

What is Working Capital Management?

Working capital management – defined as current assets minus current liabilities – is a business tool that helps companies use current assets effectively and maintain sufficient cash flow to meet short-term goals and obligations. By managing working capital effectively, companies can free up cash that would otherwise be trapped on their balance sheets . As a result, they may be able to reduce the… Read More »

What is Sales Margin? and how to calculate it

Sales Margin is defined as the profit earned from the transaction or sale of goods or services. The sales margin is the remaining after calculating all the costs of providing the product which includes the cost of production , materials, salaries, advertising and other relevant costs. Specific calculations of sales margin or sales margin in English, usually differ from business to… Read More »

Definition of Non-Operating Costs, Examples, Advantages, Disadvantages

On this occasion we are going to learn about the cost of non-operating expenses which are businesses. Then what are non-operating costs and where are these costs positioned in the income statement ? Please study this article. What are non-operating costs? Companies incur expenses to run their day-to-day operations and generate revenue. Such costs are called operating costs . But the company also… Read More »

How to Make an Income Statement (Full Information Here)

The income statement plays a key role in helping companies understand their performance. The income statement provides company management with an overview of the company’s revenues and expenses during a given accounting period. In conjunction with balance sheets and cash flow statements, businesses can understand their financial performance. An accurate income statement is very important to measure the company’s financial performance. They… Read More »

Definition of Mark Up in Product Pricing

In the business world, it is not uncommon to know the notion of Mark Up. Both in the business world as a distributor, producer , or consumer or user of goods. In addition, the issue of price is also very well known in the business world because it is considered an exchange rate commensurate with the product . In other words,… Read More »