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

Steps of developing a cost estimating relationship , STEPS OF DEVELOPING A ...

STEPS OF DEVELOPING A COST ESTIMATING RELATIONSHIP Firmly speaking, a CER is not a quantitative method. It is a framework for using suitable quantitative methods to quantify a

Definition of the mission and goals of the organization , Definition of the...

Definition of the Mission and Goals of the Organization Generally the organization has already established mission and aim statements. Though, it may be essential to redefine

The least-cost method, The least-cost method The process is described a...

The least-cost method The process is described as follows: Assign as much as possible to the variable with the least unit cost in the whole tableau. (Ties are broken randomly).

Standard costing and budgetary control , STANDARD COSTING AND BUDGETARY CON...

STANDARD COSTING AND BUDGETARY CONTROL In practice, the terms standard cost and budgeted cost might be used interchangeably. Whereas it is possible to have budgeting without s

Difference between budgetary control and standard costing, Difference betwe...

Difference between budgetary control and standard costing Budgetary control The budgets are prepared for the concern as a whole. The budgets are fixed on the basis of p

Labor standard, Describe the impact of different types of standards on moti...

Describe the impact of different types of standards on motivations and specifically,the likely effect on motivation of adopting the labor standard recommended?

Financial planning programs, Financial planning programs Such programs ...

Financial planning programs Such programs differ in complexity. Some simple programs can include only those variables discussed while other more complicated ones can include an

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