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-   -   Operating ratio-management accounting (https://www.askmehelpdesk.com/showthread.php?t=537730)

  • Dec 26, 2010, 08:36 AM
    d.hasini20
    Operating ratio-management accounting
    When sales,admini expenses,selling expenses and gp is given... how do v calculate the operating ratio
  • Dec 26, 2010, 05:46 PM
    Just Looking

    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.
  • Dec 27, 2010, 01:51 AM
    d.hasini20
    But what do v do with the GP
  • Dec 27, 2010, 02:58 AM
    Just Looking
    Quote:

    Originally Posted by d.hasini20 View Post
    but what do v do with the GP

    You don't need it to compute the ratio.

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