
Managerial Accounting
15th Edition
ISBN: 9780078025631
Author: Ray H Garrison, Eric Noreen, Peter C. Brewer Professor
Publisher: McGraw-Hill Education
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Chapter AB, Problem 6P
To determine
Profitability: The profitability also known as the return on sales represents the net profit earned as a percentage of the total turnover.
Margin: Margin means the net profit earned by the business and revenue represents the total sales turnover of the business in a given period.
The use of margin as the numerator and the use of revenue as the denominator in the formula of profitability.
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Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License