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In business, money is king. This is free at the end of each month when accountants scuffle to end the books and to reports for Elder management. One key locate that directors are always place for is benefit margin. It's a quickly way to let all agents know where a businesses is and what direction the afterwards month's operation may the to take. determination profit stroke is a relatively simple process. |
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Step 1 Determine the total revenue. This may be a matter of synchronization for much companies. Sales, or revenue, may be calculated when the service or Article is delivered. It may be calculated when the money transaction catches place. This determine which sales are included in which month's revenue. Step 2 Calculate the expense. This may too be called COGS (Cost of Goods Sold). no costs are included in the cost of to business to here. For people-driven businesses, this may be Deliver costs. expenditure are basically no it took to to the revenue. Step 3 Subtract expenditure from revenue. This equal gross profit. The benefit margin is reached when the gross benefit is divided by the revenue. A higher benefit margin percentage mean the businesses is more profitable. Step 4 Use the benefit margin as a tool. To the percentage to similar companies in the industry to to if benefit margin is in line with like businesses. It is too used to to if expenditure are too high or if expenses for goods and services are too low. |
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