Earlier we have gone thru the gross profit margin where the formula is : Gross Profit x 100% Total Sales Markups formula is slightly different: Gross Profit x 100% COGS Margins and markups interact in a predictable way. Each markup relates to a specific margin and vice versa. Markups are always higher than their corresponding […]
Yesterday we have gone thru the concept of COGS, right? Are you still confuse on what expenses should be classified as COGS or other Admin, Selling or Distribution expenses? If this is still too much to think, asking this question to yourself will help to identify if it is a COGS or other expenses; “Would […]
Cost of Goods Sold (or COGS), also known as Cost of Sales; is a category of DIRECT expenses in producing the goods/services sold by a company. Examples of COGS the materials needed to assemble a product and the transportation needed to bring goods from a distributor to a retailer as well as direct labour costs […]
In calculating Gross Profits, 2 elements are critical. If you get these right then you shall see the GP margin as close to the actual situation. 1) Sales – this is the total of all the sales invoices (irrespective of whether the customers made payment to you) minus all discounts & returns from your customers. […]
In calculating Gross Profits, 2 elements are critical. If you get these right then you shall see the GP margin as close to the actual situation. 1) Sales – this is the total of all the sales invoices (irrespective of whether the customers made payment to you) minus all discounts & returns from your customers. […]
Basic understanding of Balance Sheet (B/S): 1) Non-Current Assets – This is a category u put in all ur fixed assets and investments in subsidiary/asso 2) Current Assets; this is where all liquid assets are categorized such as bank/cash balances, inventories, FD, trade/other debtors, investments in shares etc (where there is movements/changes within 12mths) 3) […]
In P&L there’s some basic info; 1) Sales / Revenue (in Bahasa it’s called Jualan / Perolehan) – this is the recorded sales ur company has made for the period. 2) Cost of Goods Sold (COGS) – it is a collection/classification of expenses that is used in producing the final product/services for sale. it includes […]
1) Balance Sheet – this is a statement that shows your company’s assets & debts at a glance. it is only valid as of that day (usually the end of the financial year) 2) Profit & Loss Account – this is where it shows how much your sales for the period (usually for 12 mths […]
