unit 7 dq accounting - Over the opening or closing stock...

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Hello class and professor, There are the different product of computers in the market and that have the more competition between them. The profit of the company is depend of the selling value, warranties, offers and etc. according to my calculation the increase and decrease of the gross profit is that. The Gross profit should increase in proportion may be due to the following activities. Without a corresponding increase in cost of items sold increase the selling price of items sold. Without a corresponding reduction in selling price reduction in cost of items sold. Opening or closing of the stock overvaluation of shares under evaluation. The decrease in gross profit may be due to the following things. Sale price of items without corresponding reduction in cost of items sold, decrease. Without any increase in selling prices increase the cost of items sold.
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Unformatted text preview: Over the opening or closing stock valuation, the valuation of stock. Gross profit or gain is the difference between sales and overhead costs of creating a product or a service, payroll, taxation, and the deduction of interest payments. The operating profit earnings before interest and taxes is different. In the company we increase the sale value it also increase the gross sale and it also increase the net sales because the formula of net sales shows that. Net sales = Gross sales – sales of returns and allowances. More Net sales are increase the gross profit with that formula Gross profit = net sales – cost of items sold In that case which companies have more gross profit? That is the better company in comparison to other company....
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This note was uploaded on 10/20/2011 for the course BUISNESS ab202 taught by Professor Millazzo during the Spring '11 term at Kaplan University.

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