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.
Full Service Recourse Factoring : In this kind of factoring the client has to bear the risk of default made through the debtors. There the factor had advanced funds against book de
Types of Non-Controlled Variables a) Parameters: These are input variables that for a given simulation have a constant value. They are factors which help specify the relat
Independence of observations An important assumption for the simple linear regression model is the independence of errors. In many time series models, this assumption is violat
Assumption of break even analysis The break even analysis is based upon the following assumptions : 1) All elements of cost, i.e., production , administration and selling di
The case of a fixed discount When evaluating inventory decisions when a fixed discount rate exists, the appropriate procedure is to compare the total costs of the EOQ with the
Determine the cost according to normality According to normality: under this category cost may be categorized as follows: Normal cost: it is the cost which is normally i
Imposed Budgets In this approach to budgeting, top management prepares a budget with little or no help from operating personnel, which is then obligatory upon the employees who
Types of Costs In short run, costs can be of three general kinds: Fixed Cost: Total fixed costs stay constant as volume differs in the relevant range of production. Fixe
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
Differnetial cost analysis uses
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