Operating cost
This query is : Resolved
12 July 2012
Dear sir,
Please explain about operating cost and its percentage on sales and how can i calculate operating ratio.
regds
Shyamlal
Please explain about operating cost and its percentage on sales and how can i calculate operating ratio.
regds
Shyamlal
12 July 2012
operating cost means cost of goods sold(purchase) plus operating expenses(administarative, selling , personal). but exclude these items like depreciation, interst , provissions etc.
formula : (cost of goods sold+ O Expenses)/net sales x 100
an operating ratio of 80 or lower is considered desirable.
formula : (cost of goods sold+ O Expenses)/net sales x 100
an operating ratio of 80 or lower is considered desirable.
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