A periodic inventory system uses a manual inventory count at the end of the year. This amount, labeled ending inventory, becomes the beginning inventory for the next year. Purchases of new inventory ...

The payroll-to-gross-profit ratio measures the relationship between the gross wages of a company in a given period with the company gross profit for the same period. Like all financial ratios, it is ...

Profit is an essential component of any business operation. It indicates the business's financial success and allows owners to continue running their companies. Understanding how to calculate profit ...

Gross margin is a top line item in a company’s income statement measuring profitability after production costs have been deducted. Gross margin is the amount of money left over after subtracting the ...