Gross Profit
This query is : Resolved
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.
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
The possible reasons
1. Selling price reduced
2. Cost of inputs may increase
3. other direct cost may high
1. Selling price reduced
2. Cost of inputs may increase
3. other direct cost may high
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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.
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.
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31 July 2010
Change of G/P ratio may be due to
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.
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.
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