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Explain Administration cost and Pre production costs
Administration cost:
The cost of formulating policy, directing the organization and controlling the operating of an undertaking which is not related directly to a product or a service constitute administration costs.
Pre production costs:
There are those costs which are incurred on making a trial production run prior to the formal production.
Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.
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