Net Sales Defined What is net sales revenue? Net sales revenue refers to a company’s total sales revenue in a given fiscal period after subtracting certain items. These items include returns, allowances, and discounts. Net sales revenue is in contrast to gross sales revenue. Gross sales revenue is not adjusted for returns, allowances, and discounts.
See Also: Auditor Audit Committee Choose a CPA/Auditor Allowance for Uncollectible Accounts Are You Collecting Business Data? Managed Sales And Use Tax Audit Programs A managed audit is an agreement with a state’s taxing authority in which a company self-examines its own books and records. A managed audit agreement allows the company, or an outside
See Also: Raise Inventory Turnover Ratio Economic Order Quantity LIFO vs FIFO Financial Ratios Days Inventory Outstanding Inventory Turnover Ratio Analysis Definition Inventory turnover ratio, defined as how many times the entire inventory of a company has been sold during an accounting period, is a major factor to success in any business that holds inventory.
See Also: How to Keep Your Corporate Veil Closed Corporate Veil Employee Stock Ownership Plan (ESOP) Intrinsic Value- Stock Options Golden Parachute How to Hire New Employees Sales and Marketing Compensation Compensating sales and marketing employees is a critical, and complicated, issue for many companies. Sales incentives are very common today and many companies experience
See Also: Sensitivity Analysis Valuation Working Capital Analysis Return on Asset Analysis Standard Chart of Accounts SWOT Analysis (ROE) Return on Equity Fixed Asset Turnover Analysis Definition The definition of fixed asset turnover analysis and ratio shows what portion of sales is generated from fixed asset investment. Additionally, it is most likely to be useful
See Also: Economic Order Quantity (EOQ) Sales Order Business Intelligence and Finance Mergers and Acquisitions (M&A) Delivery Order Definition The delivery order definition is the document which details the delivery information of an item, is very important in distribution. A delivery order is an important document in 2 ways: it has full details of how the
See Also: DSO – Daily Sales Outstanding Daily Sales Outstanding Formula Daily Sales Outstanding Calculation The daily sales outstanding calculation requires little more than a basic understanding of mathematics. Maintaining proper financials allows this and other essential calculations to be performed. The days sales outstanding formula, ultimately, leads to monitoring the health and wealth of
See Also: Manufacturing Cost Direct Materials Direct Labor Overhead Direct Cost vs. Indirect Cost Cost of Goods Sold (COGS) Definition Cost of Goods Sold (COGS), defined as the inventory expense that is sold to customers and is known as the largest expense to a company. It is also referred to as the Cost of Sales,
See Also: Cost-Volume-Profit (CVP) Model Cost Volume Profit Formula: Breakeven Sales Volume Breakeven Sales Volume = Fixed Costs ÷ (Sales Price – Variable Costs) Breakeven Sales Volume = Fixed Costs ÷ (Contribution Margin) 6,000 = $30,000 ÷ ($7 – $2) 6,000 = $30,000 ÷ ($5) As you can see, the theater has a contribution margin
See Also: Accounting Principles Accounting Concepts Income Statement Accrual Based Accounting Payroll Accounting Commission Accounting Definition Commission Accounting can easily be defined as a revenue or expense to the company during the process of a sale. Typically this type of accounting is used for real estate firms who work off of commission or a similar
See Also: How to Select Your Commercial Insurance Broker Proforma Invoice Example PEO or Outsource Payroll Commercial Agents Commercial agents are individuals, who may be part of a commercial agency, hired by a company to represent one or more principals within an organization. Typically, they will seek out and acquire business on behalf of his
See Also: Business Driver Example Value Drivers: Building Reliable Systems to Sustain the Growth of the Business Cost Driver Market Positioning Are You Collecting the Data You Need to Run Your Business? Financial Position Business Drivers Definition Business drivers, defined loosely as the main factors and resources which provide the essential marketing, sales, and operational