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

Implementation of abc analysis, Implementation of ABC analysis The foll...

Implementation of ABC analysis The following steps are included in implementing the ABC analysis: 1. Categorize the items of inventories, establishing the expected use in un

Case study, Susan works in a real estate office that is equipped with up-to...

Susan works in a real estate office that is equipped with up-to-date copiers, scanners, and printers. She is frequently the only employee working in the office in the evenings and

Types of factoring, Types of Factoring The factoring facilities can be ...

Types of Factoring The factoring facilities can be largely categorized in four groups that are as follows: 1)   Full service non-recourse (old line) 2)   Full service rec

Production, Production As you would suspect, effectively directing an o...

Production As you would suspect, effectively directing an organization needs prudent management of production. Because this is a hands-on process, and often entails dealing wit

Explain about office and administrative expenses, Explain about Office and ...

Explain about Office and administrative expenses These expenses are not related to factory but they pertain to the management and administration of the business. Such expenses

Determine important factors while praparing sales budget, Determine importa...

Determine important factors while praparing sales budget The possible factors to be taken into account while preparing a sales budget are discussed as follows: 1) Past sales

Mgt acc., company jobcosting system

company jobcosting system

Critique of performance measurement, Critique of Performance Measurement ...

Critique of Performance Measurement This section brings together material from preceding data in this lesson in order to provide a critical appraisal of performance measurement

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