Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Capital turnover ratio
Meaning: this ratio establishes a relationship among net sales and capital employed.
Objective: the objective of computing this ratio is to verify the efficiency with which the capital employed is utilized.
Components: there are two components of this ratio which are as under:
Net sales
Capital employed
Computation: this ratio is computed by separating the net sales by the capital employed. This ratio is usually expressed as x number of time. In the form of a formula this ratio might be expressed as under.
Capital turnover ratio= net sales/capital employed
Net sales = gross sales-sales return
Capital employed= long term debt + shareholder's fund
Interpretation: it shows the firm's ability to generate sales per rupee of capital employed. The higher the ratio the greater is the dales made per rupee of capital employed in the firm and as higher is the profit. A low capital turnover ratio to low sales generated in relation to capital employed or excessive capital being used in the firm.
.1 You are the Management accountant of an industrial concern and have been assigned the duty of preparing a cost accounting system. Initially it has been decided to prepare three
Problem From the following data, calculate overhead variances of following: (a) Variable overhead expenditure variance (b) Fixed overhead expenditure variance (c) Total ov
Introduction to Performance Evaluation Performance evaluation deals with the area of MA that is concerned with: 1) Holding individual managers responsible for certain aspect
Scenario - Ahi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $100,000,000, due on March 15. There are no penalties or interes
Examples
Standard costing in modern environment Standard costing has traditionally been associated with labor-intensive operations, but it can be applied to capital-intensive production
Analysis of Each Decision Package This analytic procedure permits the manager of the decision package and its alternatives to assess and validate its operation. Numerous quest
Identification of decision packages - Zero base budgeting Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum
What is the Responsibility of operating budget when the operating budget of a firm is constructed in terms of responsibility areas it is called the responsibility budget shows
briefly discuss five characteristics of relevant cost
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd