Tag Archives | Notes

Quick Notes on Du Pont Chart | Accounting

The Du Pont Company of US pioneered a system of financial analysis which has received widespread recognition. As a useful tool for financial analysis, it has been adopted by many firms in some form or the other. The earning power, represented by return on capital employed, shows the combined effect of the net profit margin and the capital turnover. A [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Finacial Analysis|Comments Off on Quick Notes on Du Pont Chart | Accounting

Profitability Ratios and it’s Categories | Accounting

The profitability of the firm is also measured in relation to investments. The term investment may refer to total assets, capital employed or the owners' equity. The efficiency of an enterprise is judged by the amount of profits. But sometimes the conclusion drawn on the basis of profit-to- sales ratios may be misleading. Because it is possible that profit in [...]

By |2017-02-06T20:58:56+00:00February 6, 2017|Ratio|Comments Off on Profitability Ratios and it’s Categories | Accounting

Production Overhead | Accounting

The below mentioned article provides a note on production overhead. The production cost is inclusive of all direct material, direct labour, direct expenses and manufacturing expenses. The manufacturing expenses is inclusive of all indirect materials, indirect labour and indirect expenses concerned with manufacturing activity which starts with supply of materials and ends with primary packing of the product. Production cost [...]

By |2016-12-12T08:06:17+00:00December 12, 2016|Overheads|Comments Off on Production Overhead | Accounting
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