31 July 2010
what may be the reason for changes in GP Ratio of 2 Asst. Years? For Eg. in first A Y the turnover was 20000, GP 10%, i. e., Rs 2000, but in the next year the turnover hikes to Rs. 30000, 9% GP, i.e, 2700.
31 July 2010
AGREED, PROFIT MARGIN REDUCED DUE TO INCREAE IN COST OF GOODS SOLD OR SALE PRICE DECREASE DUE TO COMPITION. MFG COST INCREASED IN CASE OF MFG CO, CONSUMPTION OF RAW MATERIAL INCREASED.
1) Change in selling price per unit 2) Change in Raw material price per unit 3) Change of consumption ratio i.e. change of input/output ratio. 4) Changes in other direct expenses like, increase/decrease in wages per hour, etc.
CAclubindia
