159-GrossProfitBasicsKey

159-GrossProfitBasicsKey - Name: Date Taken: Class: Total...

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Class: Date Taken: Total Possible Marks: 26 Gross Profit Basics Complete the following questions in the time allowed by your teacher QUICK DEFINITIONS Write a short, accurate definition for each of the following key terms. (2 marks for each good quality definition) 2 1. Define: sales revenue Sales revenue (or turnover) refers to the total value of sales achieved in a particular period. It is the value of invoiced goods and services to customers. 2 2. Define: cost of sales Cost of sales is the total cost of directly producing or buying the goods and services sold in a period. For example, for a manufacturing business, cost of sales would include raw materials, components, bought-in goods and other direct costs of production including labour and energy. 2 3. Define: Gross profit margin The gross profit margin is a measure of profitability. It is calculated as a percentage, where gross profit is divided by sales revenue. 2
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This note was uploaded on 02/08/2012 for the course FIN FIN4345 taught by Professor Koij during the Spring '10 term at FIU.

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159-GrossProfitBasicsKey - Name: Date Taken: Class: Total...

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