(1)
Introduction:
The cost of cost to revenues can be determined by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.
To compute:
The cost to revenue ratio of the company for the year 2017.
(2)
Introduction:
The cost of cost to revenues by dividing cost (including cost of sales as well as selling and administrative expenses) by revenues generated in that year.
To compute:
The cost to revenue ratio of the company for the year 2016.
(3)
Introduction:
The ratio cost to revenue is necessary to calculate as it indicates opportunities for activity-based costing to reduce the cost and improve efficiency.
To compare: The company’s cost to revenue ratio was higher in 2016 or 2017.

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Chapter 4 Solutions
Managerial Accounting
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