Gross margin: related pages
Cost of goods sold (COGS)
The accrued cost of the goods (or services) supplied in a period; the difference between sales and gross profit.
Interest margin
Interest income minus interest expenses as a percentage of average interest earning assets.
LIFO
A method of valuing stocks (inventory) by assuming that the most recent purchases are used first.
FIFO
A method of valuing stocks (inventory) for accounting purposes. Stocks issued are assumed to be the oldest available.
Net realisable value
Net realisable value can be used used to calculate the value of assets when cost of purchase cannot be used
WIP
The part of stocks (inventory) that has had some work done on it, but which has not yet been made into goods ready for sale.
Replacement cost
A profit figure that is calculated using the cost of supplies at the cost of replacing supplies at current prices.
Overhead cost ratio
Overhead costs ÷ sales; the proportion of sales that is spent on overheads.
Sales, general and administrative costs
Overheads or administrative overheads; usually the most important element of operating costs; largely fixed costs with some variable elements.
Copyright Graeme Pietersz © 2005-2019
