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View Full Version : Operating ratio-management accounting


d.hasini20
Dec 26, 2010, 08:36 AM
When sales,admini expenses,selling expenses and gp is given... how do v calculate the operating ratio

Just Looking
Dec 26, 2010, 05:46 PM
operating ratio = operating expenses / net sales

Operating expenses are the day-to-day expenses such as selling expenses, general and administrative expenses, and R&D - as opposed to manufacturing/production costs.

d.hasini20
Dec 27, 2010, 01:51 AM
But what do v do with the GP

Just Looking
Dec 27, 2010, 02:58 AM
but what do v do with the GP

You don't need it to compute the ratio.