gross profit percentage calculation
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gross profit percentage calculation

2. Accounting earnings are based on the assumption of accounting instalments, which refers to the production and operation results of a certain period of time. Early accounting earnings is calculated according to the cash basis, and the modern accounting earnings is according to the classification current income and expenses of accrual basis, after the appropriate ratio calculated. However, the benefits of cash determination are more acceptable to users. Followed by Edwards and bear published in his 1961 book "the theory of corporate earnings and measurement of the current operating profit is defined as the sales revenue more than the amount of current production and cost of sales, which can realize the cost savings is in this issue of asset price increases, which can realize the history of the cost savings are the pin commodity costs and the difference between the current purchase price; The realized capital gains are the amount of sales revenue greater than the historical cost when dealing with long-term assets. They argue that "these incremental sums provide investors with a reasonable starting point for measuring the scale of relative affluence and a detailed analysis of the company's operating results and comparable financial conditions". They stress that any full income analysis should take into account both realized and unrealized benefits and classify them by source. When are advantageous to occur, such as no record, will not only lead to current income can't reflect, but also can lead to later to sell assets to income and related costs to wrong ratio; Operating earnings and, on the other hand, the production gains is usually produced by different management decisions, and adopted different circulation form, therefore, make the same comment on both, will weaken the role of the income statement. We should improve the market supervision system of administrative law enforcement, industry self-discipline, public opinion supervision and mass participation. Activity-based costing (ABC) is an effective management technique for assigning and manipulating the overhead costs. Overhead expense analysis and assignment can be achieved more accurate by utilizing ABC methods for a variety of products, for product expenses and profitability analysis and for appropriate distribution and control over the overheads. Investors are confused and lost on the way forward, the confusion and bewilderment itself will keeps everyone to learn, so investors are eager to learn has been exist, is the power of the instinct of the profit will lead us to learn. It is not easy to learn the key question is: futures, its difficulty may not be less than the difficulty of the transaction, this kind of difficult to make a lot of people were forced to study only a period of time, that then is in a state of flow for a long time, but it is difficult to further more in-depth study. Marvin Loh, senior fixed income strategist at BNY Mellon,