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Profitability ratios
The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business requires profit not only for its existence but also for diversification and expansion. Profits are thus a useful measure of overall efficiency of a business. profits to the management are the test of effectiveness and a measurement of control: to owners a measure of worth of their investment a measure of tax paying capacity and the basis of legislative action to customers source of finance for growth and existence and finally to the country profits are an index of economic progress profitability ratios are calculation to measure the overall efficiency of the business.
based on your assumptions, calculate the cost per unit (total product cost on a per unit basis) under a traditional accounting system based on direct labor hours (table 1 prepared
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Working capital is a necessary requirement for any type of business activity. Banks in India nowadays constitute the main suppliers of working capital credit to any type of busines
QUESTION 1: Part A What are the main components of a set of Financial Statements and what are their respective purposes? Part B Trial balances of Hans Ltd on 30 Ju
1) What is the difference between decreasing marginal returns and negative marginal returns? 2.) "A firm in monopolistic competition maximizes its profit by producing where it
Differnetial cost analysis uses
The management of Popular Stores Sdn. Bhd. are in the process of exploring the company’s investment opportunities.
discuss which of the cost classification is suitable for LunchBreak LTD and why?
Difficulties in cost reduction 1) Resistance by employees to pressure to reduce cost usually because the nature and purpose of the campaign has not been properly explained to t
Deposits from the public are one of the important sources of finance mainly for fine established big companies along with a vast capital base. The period of public deposits is rest
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