gross margin

Tag: gross margin

3 Benefits of an Analysis of Customer Profitability

Over time weeds grow in any garden. In the same way, unprofitable customers work their way into your company. To avoid the high costs of low profit customers, you should perform an annual analysis of customer profitability. Therefore, weed your garden of customers who are sapping your profits and cash flow. Although there are many

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Margin Percentage Calculation

See Also: Margin vs Markup Markup Percentage Calculation Retail Markup Gross Profit Margin Ratio Analysis Net Profit Margin Analysis Margin Percentage Definition Gross margin defined is Gross Profit/Sales Price. All items needed to calculate the gross margin percentage can be found on the income statement. The margin percentage often refers to sales or profitability which

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Lower of Cost or Market (LCM)

See Also: Accounting Principles Accounting Concepts Generally Accepted Accounting Principles (GAAP) How to manage inventory Inventory Cost Lower of Cost or Market (LCM) Definition Lower of cost or market accounting is generally based off of the accounting concept conservatism. It generally states that certain accounts should be stated at their historical costs or market costs

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Financial Jargon

See Also: Categories of Banks Finding the Right Lender Funding Source Versus Lender How to Manage Your Banking Relationship Interest Rate Is it Time to Find a New Bank? Financial Jargon My client, Elliott, met a friendly banker at a networking function. The banker told him, “I like your business and would like to loan

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The KISS Principle can be “Simply Stupid”

How often have you heard a business owner say “Why would anyone include depreciation, or rent, or insurance and many similar costs, in their Cost of Goods Sold? It’s best to keep it simple!” They want to apply the KISS Principle, but it can be simply stupid. The KISS Principle can be “Simply Stupid” Well

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