Explain the ratio analysis according to kosher, Managerial Accounting

Assignment Help:

Explain the Ratio analysis according to kosher

A ratio is the relation of the amount a to another b expressed as the ratio of a to b; a: b (a is to b) or a as simple fraction integer decimal fraction or percentage.

Is a simple language ratio is one number expressed in item of another and can be worked out by dividing one number into the other.

This quantitative relationship (i.e. ratio may be expressed in either of the following ways:

In proportion: in this form the amount of the two item are being expressed in a common denominator. The example of this form of expression is the relation ship between current assets and current liabilities as 2:1.

In rate or time or coefficient: in this form a quotient obtained by dividing one item by another item is taken as unit of expression. The example of this form is sale divided by stock (say it comes 60; thus 6 time is the ratio between sales and stock. It is important to note that when ratio is expressed in this form it is called as turnover and is written in times.

In percentage: in this form a quotient obtained by dividing one item by another is multiplied by one hundred and it becomes the percentage form of expression. For example. For example the relation ship between gross profit and sales may be expressed as 25%

 


Related Discussions:- Explain the ratio analysis according to kosher

What are direct expanses, What are Direct expanses These are expanses ...

What are Direct expanses These are expanses which can be directly, conveniently and wholly allocated to a specific cost centres or cost units examples of such expanses are hir

The simplex method, The Simplex Method In the graphical solution the op...

The Simplex Method In the graphical solution the optimum solution is always associated with a corner (or extreme) point of the solution space. The simplex method is based funda

Optimum solution, Optimum Solution From the stand point of implementing...

Optimum Solution From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be

Working capital management, literature review of effects of working capital...

literature review of effects of working capital on financial performance?

What is pricing decision, Introduction to pricing decision A pricing d...

Introduction to pricing decision A pricing decision is one of the most crucial and difficult decision that a firm has to make. It is one of the most difficult decisions. Such

Incremental budgeting, the suitability of incremental budgeting to a stable...

the suitability of incremental budgeting to a stable and static environment

Explain briefly about life cycle costing, LIFE CYCLE COSTING Introduc...

LIFE CYCLE COSTING Introduction Life cycle costing as its name implies costs the cost object i.e., product project etc. over its projected life. It is used to explain a s

Transportation model-linear programming, Transportation model In the obvi...

Transportation model In the obvious sense, the model deals with the determination of a minimum cost plan for transporting a single commodity from a number of sources (e.g. factor

Pricing over the life cycle of a product, Q. Pricing over the life cycle of...

Q. Pricing over the life cycle of a product? The cycle begins with the invention of the new product. The innovation of a new product and its degeneration to a common product is

Consistent Descion framing, What does it mean when we say consistency is th...

What does it mean when we say consistency is the central feature of economic rationality?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd