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Proprietary ratio/ equity ratio
Meaning: the ratio measures a relationship among proprietor's funds and the total assets.
Objective: the objective of computing this ratio is to find out how the proprietors have financed the assets.
Computation: this ratio is computed by dividing the proprietor's funds by total assets. The ratio can be calculated.
This ratio can also be shown in percentage which indicates the percentage of owner's capital to total capital of the firm.
Full Service Non Recourse: in this method the book debts are purchased through the factor assuming 100 percent credit risk. In case of default through the debtor the whole risk is
Stock-out costs These are the opportunity costs of running out of stock. They comprise: 1) The costs of lost customer sales, and therefore lost contribution to fixed costs.
definition and illustrations
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During the year the company worked a total of 145,900 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,305,346. What is the amount of underapplied o
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