size of the safety stock is directly affected by the cost of a stockout, the probability of a stockout, and the carrying cost of stock. The economic order quantity indirectly affects the size of the safety stock.
The size of the safety stock is an important consideration in inventory management. It is a buffer that helps to protect against unexpected demand or supply chain disruptions. The safety stock level is calculated based on a number of factors, including the cost of a stockout, the probability of a stockout, the carrying cost of stock, and the economic order quantity.The cost of a stockout is a key factor in determining the size of the safety stock. This cost includes lost sales, backorders, and dissatisfied customers. The higher the cost of a stockout, the larger the safety stock needs to be to mitigate the risk of running out of inventory. For example, if the cost of a stockout is very high, such as in the case of a critical medical supply, the safety stock needs to be very large to ensure that the supply is always available.The probability of a stockout is another important factor in determining the size of the safety stock. This probability is based on historical demand patterns, lead times, and supply chain reliability. If the probability of a stockout is high, such as in the case of a highly variable demand pattern, the safety stock needs to be larger to mitigate the risk of running out of inventory.The carrying cost of stock is also a factor in determining the size of the safety stock. This cost includes storage, handling, and insurance costs. The higher the carrying cost of stock, the smaller the safety stock needs to be to avoid excess inventory costs.
To know more about stock visit:
brainly.com/question/31476517
#SPJ11
_______are made of pooled money of shareholders in a company invested
by a fund manager
Mutual Funds
Savings Bonds
Certificates of Deposit
certificates of deposit
The workers at an automobile manufacturing plant would be considered to be a form of _____ capital
The workers at an automobile manufacturing plant would be considered to be a form of fixed capital.
Fixed capital is the part of the general capital outlay of a business invested in bodily belongings together with factories, cars, and equipment that stay inside the business nearly permanently, or, more technically, for multiple accounting duration.
One way of measuring capital intensity is physical capital per worker. for example, car production requires a full-size quantity of luxurious equipment for every employee. That makes car manufacturing a capital-extensive enterprise with huge capital fees.
Even as cash float measures how lots cash the organization generates or consumes in a given duration, operating capital is the distinction between the organisation's current property — consisting of cash and other property that may be converted into coins inside a yr — and its modern liabilities, including payroll, debts payable and accrued.
Learn more about organisation here: https://brainly.com/question/24448358
#SPJ4
Which career involves using tools or machinery to remove and dispose of dangerous materials?
A career that involves using tools or machinery to remove and dispose of dangerous materials is a career as a hazardous materials removal worker.
What do you understand by the term career?A career is an individual's metaphorical journey through learning, work and other aspects of life. There are several ways to define a career and the term is used in a variety of ways. Career management or career development describes the active and purposeful management of a career by an individual.
Ideas of what comprise career management skills are described by the Blueprint model in the United States, Canada, Australia, Scotland, and England and the Seven C's of Digital Career Literacy specifically relating to Internet skills.
Learn more about career, here:
https://brainly.com/question/30040900
#SPJ1
a collection of coordinated advertisements that share a single theme is called a(n) . (enter one word in each blank.)
A collection of coordinated advertisements that share a single theme is called a campaign.
Campaign refers to the coordinated set of activities designed to achieve a specific goal or objective, typically focused on bringing about a particular type of change. It's usually carried out over a period of time and is often linked to a particular set of communication objectives, with the aim of achieving a specific outcome.
The following are the characteristics of a campaign:
It is designed to achieve a specific goal or objective.It is normally carried out over a predetermined period of time.It is usually focused on bringing about a particular type of change.It is normally connected with a specific set of communication objectives.It has a specific result in mind at the conclusion of the process.Campaigns are a powerful tool for persuading and inspiring people to act in a specific way. When properly crafted, they may influence behavior and opinion, inspire people to take action, and generate measurable results.
To know more about advertising, visit https://brainly.com/question/1658517
#SPJ11
Employees' last names would usually make an appropriate primary-key field. True or False?
The given statement " Employees' last names would usually make an appropriate primary-key field." is false. While employees' last names can be a unique identifier, it may not always be the best choice for a primary key field.
Primary key fields must be unique, not null, and have a consistent data type, and they must be able to uniquely identify each record in a table. While last names are usually unique, there are some exceptions, such as employees with the same last name who are related.
Additionally, using a last name as a primary key may not be ideal if there is a possibility that an employee's last name may change due to marriage, divorce, or other reasons. It may be better to use a unique employee ID number or a combination of fields, such as first name, last name, and birthdate, to create a composite primary key field that is more unique and reliable.
To know more about employees click here
brainly.com/question/30010135
#SPJ11
Use these graphics to answer the question.
An association of medical researchers examined exercise trends among adults.
pls help need an answer fast
Which ratio shows the relationship between the total percent of people who exercised in 2014 to the percent of adults ages 18–24 who exercised in 2016?
47:42
58:45
48:59
48:50
The ratio that represents the relationship between the total percent of people who did exercise in 2014 compared to the the percent of adults ages 18–24 who exercised in 2016 is 48:59.
What is a ratio?A ratio is the comparison of two figures, this can be done with the past data, or can be done with the budgeted or any competitor. In the example given the data is compared with the past data, base year is 2014 and the current year is 2016.
The ratio that is calculated represents that the total percentage of people were 48% in 2014 and the adults in 2016 as a total represents a percentage of 59% and therefore the ratio is 48:59.
Learn more about ratios at https://brainly.com/question/27409131
#SPJ1
Hazmat labels are used to communicate information necessary to protect human health and the environment
The natural environment or natural world encompasses all living and non-living things occurring naturally, meaning in this case not artificial.
What is the meaning of Environment?An organism's environment is made up of the external conditions, resources, stimuli, etc. that it interacts with.
We are impacted by everything around us. You decide if they are still alive or not. It is made up of organic forces like both physical and chemical ones. Living creatures occur in environments. They are constantly engaging with it and adapting their actions to the situation.
Everything in our immediate surroundings—including both living and nonliving things including air, water, soil, plants, and animals—is considered to be part of our environment. The magnificence of nature sustains life on Earth.
Learn more about the Environment here:
https://brainly.com/question/13107711
#SPJ9
Which of the following budgets
would be considered balanced?
A budget where the amount you spend is greater than the amount you
earn.
A budget where the amount you earn is equal or less than to the amount
you spend.
A budget where the amount you save is less than the amount you spend.
A budget where the amount you spend is equal or less than the amount
you earn.
what are some of the many ways that global supply chains are more complex than purely domestic supply chains? (select all that apply.)
Many variables contribute to the complexity of the supply chain, but increased customer expectations for shorter lead times, more extensive products and services, and customized experiences are among the most common causes.
Increasing complexity in supply chains?Supply chains are widely acknowledged to be complicated, to be becoming more so over time, and to increase operational expenses. Professionals must therefore seek out strategies to lessen the negative effects that supply chains may have on their business.
Top 5 Supply Chain Challenges According to Shippers
maintaining a low cost of transportation.
observing the needs of the market.
the procurement of dependable, consistent carrier capacity.
Following the most recent technological developments and requirements.
Performance in terms of delivery and pickup times.
To know more about customer visit:
https://brainly.com/question/17241252
#SPJ4
Please help
9. Describe preventing/controlling risk in relation to how businesses deal with each of the
following:
a. Safety-
b. Security-
c. Employee incompetence-
d. Product selection-
e. Credit-
f. Changes-
g. Weather extremes-
a. Safety - Businesses can prevent and control risks related to safety by implementing safety protocols and guidelines, providing adequate training to employees, regularly inspecting equipment and facilities, and promptly addressing any safety concerns.
b. Security - Businesses can prevent and control risks related to security by implementing access control measures, using security cameras and alarms, regularly reviewing and updating their security policies, and training employees on how to identify and respond to security threats.
c. Employee incompetence - Businesses can prevent and control risks related to employee incompetence by providing thorough training and development programs, setting clear performance expectations, and regularly monitoring employee performance and providing feedback.
d. Product selection - Businesses can prevent and control risks related to product selection by conducting thorough research on products, identifying potential risks and liabilities associated with them, and regularly reviewing and updating their product selection policies.
e. Credit - Businesses can prevent and control risks related to credit by establishing credit policies and procedures, conducting credit checks on customers, setting credit limits, and regularly monitoring accounts receivable.
f. Changes - Businesses can prevent and control risks related to changes by conducting thorough risk assessments before implementing any changes, communicating changes to stakeholders, establishing contingency plans, and regularly reviewing and updating their change management policies.
g. Weather extremes - Businesses can prevent and control risks related to weather extremes by implementing weather emergency protocols, regularly monitoring weather forecasts, having emergency supplies on hand, and regularly reviewing and updating their weather emergency plans.
\( \: \)
Preventing and controlling risk in business involves implementing various strategies for different aspects such as safety, security, employee competence, product selection, credit, changes, and weather extremes.
Explanation:Preventing/Controlling Risk in BusinessSafety: Businesses can prevent safety risks by implementing safety measures such as providing proper training, enforcing safety protocols, and conducting regular inspections.Security: Businesses can control security risks by installing security systems, implementing access control measures, and conducting background checks on employees.Employee incompetence: Businesses can prevent employee incompetence risks by providing comprehensive training programs, establishing clear performance expectations, and conducting periodic performance evaluations.Product selection: Businesses can control product selection risks by conducting thorough market research, partnering with reputable suppliers, and performing product testing.Credit: Businesses can prevent credit risks by setting strict credit policies, conducting credit checks on customers, and implementing effective collection procedures.Changes: Businesses can control risks associated with changes by implementing change management strategies, communicating effectively with stakeholders, and conducting impact assessments.Weather extremes: Businesses can prevent or mitigate risks associated with weather extremes by implementing weather monitoring systems, having emergency response plans in place, and investing in appropriate insurance coverage.Learn more about Risk management in business here:https://brainly.com/question/33515955
#SPJ11
Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment'. Do you agree or not? Justify using practical examples (9 marks)
Answer:
Yes, I agree
Explanation:
As managers in an organization, proper attention must be paid to the forces in the external environment because these forces are dynamic and business cannot exist without them hence must align with these changes inorder to be successful.
Some of theses forces have direct impact with an organization such as customer's reaction to a company's product, how well the company stays ahead of it's competitors , suppliers and creditors. External forces in the environment that have indirect impact to a company are compliance with local laws, socio cultural forces, religion etc.
Practical examples
• Customer's reaction to a product speaks to what measures are taken by a company to improving the quality of products produced and sold. Favourable reaction would make the company succeed while unfavourable reaction could mar the company's performance.
• Level of compliance with local laws is also an important force in the external environment that must be adhered to. If a company must succeed, it must comply with local laws and order, failure to do so could result to fine or expulsion from the community.
I will give brainlest please help.
Answer:
Errrr, I mean I forgot most of this :p
Explanation:
Sorry :c
When there are many people involved in attempting to reach an agreement, the transactions costs are often _______ than the net benefits from reducing an externality. In such cases, a private solution to an externality problem _______ feasible.
A.lower; is not
B.lower; is
C.higher; is
D.higher; is not
The transaction costs are frequently more than the net gains from lowering an externality when numerous people are trying to come to an agreement.
The fees incurred when purchasing or selling products and services on the open market are referred to as transaction costs. In addition to the product's real cost, these expenses also include any brokerage fees or commissions, taxes, transportation expenses, and the time and effort needed to complete the transaction. The effectiveness of a market is significantly influenced by transaction costs, which also have an impact on buyer and seller behaviour. Increased transaction costs may deter consumers from entering the market, resulting in less competition and a less efficient market. Making educated judgements and maximising the value of transactions in every market requires an understanding of transaction costs.
Learn more about transaction costs here:
https://brainly.com/question/13164233
#SPJ4
Question 8 of 10 Which choice best describes differences in corporate decision-making between the United States and the European Union? O A. Workers in the European Union are usually more involved in corporate decision-making. OB. Workers in the United States are usually more involved in corporate decision-making. OC. Workers in the European Union are involved less in decisions over labor. O D. Workers in the European Union are usually less active in trade unions.
The involvement of employees in corporate decision-making is often higher in the European Union, which highlights the disparities between corporate decision-making in the two regions.
What is meant by corporate decision-making?Corporate decision-makers are experts who select options from a variety of options in order to accomplish an organization's objectives and address problems. After choosing the appropriate course of action for their circumstance, they acquire information, assess the available evidence, and take action.
In most cases, the shareholders of a private corporation with many shareholders will either vote on a resolution during a shareholders' general meeting or by written resolution of the shareholders.
Organizations must choose actions that will maximize short-term results and avoid long-term dangers if they want to be competitive and thrive. Making strategic decisions reveals a company's future prospects and the options that can be put into practice to achieve success.
Therefore, the correct answer is option A. Workers in the European Union are usually more involved in corporate decision-making.
The complete question is:
Which choice best describes differences in corporate decision-making between the United States and the European Union?
A. Workers in the United States are usually more involved in
corporate decision-making.
B. Workers in the European Union are involved less in decisions over labor.
C. Workers in the European Union are usually more involved in
corporate decision-making.
D. Workers in the European Union are usually less active in trade unions.
To learn more about decision-making refer to:
https://brainly.com/question/27004710
#SPJ4
The technique of dividing project scope and deliverables into well-defined, executable activities is called
The technique of dividing project scope and deliverables into well-defined, executable activities is called work breakdown structure (WBS). This process involves breaking down complex projects into smaller, more manageable pieces that can be assigned to specific team members or departments.
The WBS includes all of the activities necessary to complete the project, including tasks, sub-tasks, and milestones. Each activity in the WBS is assigned a unique identifier and is organized in a hierarchical structure. This helps to ensure that all activities are accounted for and that nothing is missed. One of the benefits of using a WBS is that it allows for better project planning and scheduling. By breaking the project down into smaller pieces, the project team can more accurately estimate the time and resources required to complete each activity.
This also helps to identify potential roadblocks and areas of risk that need to be addressed. Overall, the work breakdown structure is a critical tool for project management that enables teams to work more efficiently and effectively. By creating a well-defined, executable plan, project managers can ensure that their projects are completed on time, within budget, and to the satisfaction of all stakeholders involved.
For more such questions on deliverables
https://brainly.com/question/31274313
#SPJ11
Can you answer these two questions please? it is related to each
others.
Inder the version of the game with simultaneous moves, what is the Nash equilibrium? A. Neither candidate has a dominant strategy, but the Nash equilibrium occurs where both candidates use medium adve
In the version of the game with simultaneous moves, the Nash equilibrium refers to the strategy profile where each player's chosen strategy is their best response to the strategies chosen by all other players.
It represents a stable outcome where no player has an incentive to unilaterally deviate from their strategy. In this type of game, the Nash equilibrium is achieved when all players choose their strategies simultaneously, taking into account the strategies of other players. At the Nash equilibrium, no player can improve their payoff by changing their strategy, given the strategies chosen by others. Determining the Nash equilibrium in a game with simultaneous moves involves analyzing the players' payoffs and identifying the combination of strategies that maximizes each player's payoff given the strategies chosen by others. It represents a state of strategic balance where players have reached a stable point in the game. It's important to note that there can be multiple Nash equilibria in a game, and not all Nash equilibria guarantee the best possible outcome for all players. It simply represents a state where no player has an incentive to unilaterally change their strategy.
To know more about Nash equilibrium https://brainly.com/question/29398344?referrer=searchResults
#SPJ11
which of the following is not a principle advocated by fisher and ury, authors of the book getting to yes, to help avoid disasters while negotiating for mutual benefit?
Fisher and Ury, authors of "Getting to Yes," do not advocate the principle of positional bargaining to avoid negotiating disasters for mutual benefit.
How do Fisher and Ury differ from positional bargaining in their approach to negotiating for mutual benefit?In their renowned book "Getting to Yes," Fisher and Ury emphasize principles for effective negotiation that prioritize mutual benefit and collaboration. However, they explicitly reject the principle of positional bargaining as a means to avoid negotiating disasters. Positional bargaining involves taking rigid stances and demanding concessions without exploring underlying interests or searching for creative solutions.
Fisher and Ury propose an alternative approach called principled negotiation or "negotiation on the merits." This approach encourages negotiators to focus on interests, explore common ground, and find mutually acceptable solutions that maximize value for all parties involved. By moving away from rigid positions and embracing open dialogue, they promote a cooperative and problem-solving mindset that fosters trust and positive outcomes.
Learn more about Fisher
brainly.com/question/30563226
#SPJ11
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
a person has an absolute advantage in producing a good if they can a person has an absolute advantage in producing a good if they can use other peoples' money to produce it. produce the good with a lower opportunity cost. produce more units of the good than another individual given the same resources. work out some long-term payment plan for financing the good.
The ability of any economic agent, whether an individual or a group, to produce more of a product than its rivals is known as absolute advantage.
What is Absolute Advantage?
Absolute advantage refers to a company's capacity to create a good or service at a lower absolute cost per unit using fewer inputs or a more effective process than a competitor.
Italy, for instance, is said to have an absolute advantage in that particular business if Italy can build sports cars of a higher quality, more quickly, and with larger profit than Japan can.
Production of oil is one practical illustration of absolute advantage.
Adam Smith's absolute advantage is based on a number of presumptions, including the following: labour being the only input or factor of production, and the cost of making things is determined by the proportionate amount of labour necessary. Two nations and two goods are involved in trade. Trade between the two nations is unimpeded (free trade).
To learn more on Absolute advantage from the link:
https://brainly.com/question/1655791
#SPJ4
On December 1, Home Store sells a mower (that costs $260) for $560 cash with a one-year warranty that covers parts. Warranty expense is estimated at 12% of sales. On January 24 of the following year, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Parts Inventory.
Warranty Expense: For the mower it sold on December 1 is $67.20 ($560×0.12).Parts Inventory: Parts Inventory is decreased by $39.
What is Warranty ?Warranty is a guarantee that a manufacturer or seller provides to the consumer, stating that a product will meet certain criteria or specifications. This is typically in terms of quality, performance, and durability. Warranties also provide protection against defects in materials and workmanship. In most cases, a warranty is provided as part of the purchase of a product. It may be included in the form of a written document, or be implied by the seller. The length of the warranty period varies depending on the product, and typically covers repair, replacement, or refund of the purchase price. Some products may even include an extended warranty period.
To learn more about Warranty
https://brainly.com/question/14227081
#SPJ1
What expansionary fiscal tools can be used to promote employment and economic growth when price levels are not a concern?
Expansionary fiscal tools can be used to promote employment and economic growth when price levels are not a concern including increasing government spending, decreasing taxes, or increasing government transfers.
What is the purpose of expansionary fiscal tools?The purpose of expansionary fiscal tools is to augment growth to a healthy economic level, which is significantly required during the contractionary phase of the business cycle.
In this phase, the government has the desire to decline the standard of unemployment, enhance consumer demand, and circumvent a recession. If a recession has already taken place, then it searches to end the downturn and prevent a recession.
According to the context of this question, each expansionary fiscal tool has its own terms and condition which is imposed on the basis of certain criteria. For this, enhancing the spending of the government, reducing the taxation rates, increasing the transfer made by the government, etc. are the major ones.
To learn more about Expansionary fiscal tools, refer to the link:
https://brainly.com/question/25589179
#SPJ1
A new project will require an initial investment of $250,000. Using the company’s required rate of return of 13 percent, the project's NPV is $900. Should the project be accepted? Why or why not?
Yes; It will earn an annual return of 13 percent.
Yes; It will earn $900.
Yes; It will earn an annual return of 13 percent, plus an additional $900 in present value dollars.
No; It will earn only $900.
No; It will earn a return of only .4 percent.
The project should be accepted because it has a positive Net Present Value (NPV) of $900. This indicates that the project is expected to generate a return above the company's required rate of return of 13 percent, making it a worthwhile investment.
The project's NPV is positive, indicating that it will generate more cash inflows than outflows and will add value to the company. The required rate of return is 13 percent, which means that the project will earn at least this rate of return. Additionally, the project will generate an additional $900 in present-value dollars, which will further increase its profitability. Therefore, the project should be accepted as it meets the company's investment criteria and will generate positive returns.
Learn more about Net Present Value (NPV): https://brainly.com/question/30404848
#SPJ11
How to start off with a paragraph if ur talking about a experience that u have had experiencing in some one else's perspective
Answer:
I think you mean reading in third perspective (him, her, they)
It also depends on the experience you want to talk about.
Business type: "During my time with the (insert job title or name), I have encountered many good and/or bad experiences."
Story type: (introduce the characters in the situation, and then layout the setting, and then tell the story)
During the two years he has been working, Jeffrey has saved some money to buy a house. His parents have agreed to loan him part of the down payment, and he has started to look for a house he can afford. He discovered a great house that has two apartments in it. He has looked at all the information carefully, done his budget, and thinks he can afford the house because he will live in only part of it and will rent out the other half. If Jeffrey buys this house, lives in the apartment upstairs and rents out the apartment downstairs, which of the following is true?
Answer:
you have to give "the following"
When supply chain members that buy and sell to one another are not in agreement about their goals, roles, or rewards ________ channel conflict can occur.
When supply chain actors that buy from and sell to one another do not concur on their goals obligations or advantages vertical channel conflict may result.
Explain about the vertical channel?A vertical marketing system is any distribution route that involves the cooperation of its various participants. This can include manufacturers, merchants, and distributors. To successfully supply items to customers and reach the highest levels of efficiency, they all must collaborate.
When producers, wholesalers, and retailers collaborate to meet the demands of their clients, this is known as a vertical marketing system. It enables one business to have complete control over the making and selling of a product.
A corporation can accomplish vertical integration in a variety of ways. The term "vertical" comes from the same root as the word "vertex," which means "highest point" or, more precisely, "turning point," as in a whirlpool. This late Latin word is where the word "vertical" first appeared.
To learn more about vertical channel refer to:
https://brainly.com/question/19815172
#SPJ4
PLEASE HELP IT DUE TODAY
What are stakeholders from Monopolistic competition, oligopoly, and monopoly?
Explanation:
Monopolistic competition
Monopolistic competition, many seller that differentiated products - products that differ slightly but sever similar purpose. By making consumer aware of product difference, seller exert some control over price.
Oligopoly
In an oligopoly, a few sellers supply sizable portion of products in the market. They exert some control over price, but because their products are similar, when one company lowers prices, the others follow .
Monopoly
In a monopoly, there is only one seller in the market. The market could be a geographical area, such as a city or a regional area, and does not necessarily have to be añ entire country. The single seller is able to control prices
Mark me as brilliant answer
The following data occurs chronologically from left to right:
15.2 19.7 16.0 11.1 14.8 14.5
The number of runs up and down is:
Multiple Choice
5.
2.
3.
4.
none of these.
15 runs make up the sample's median number of runs.
One metric of central tendency is the median. It is the sample's average value. Both ascending and descending order are acceptable.
The first step in determining the sample's median is to arrange the data, either in ascending or descending order. We must first arrange the given data because it is not already organised before we can get the median.
11.1, 14.5, 14.8, 15.2, 16.0, 19.7
Now, the information is listed in increasing order.
We determine that the sample's median values are 14.8 and 15.2.
The median represents the midpoint between these two numbers.
Average: 14.8 + 15.2/2 equals 15
The median is therefore 15.
To know more about median, click the below link
https://brainly.com/question/29284173
#SPJ4
Please help!! My 9th time posting this please actually help me!
Dissatisfied customers may occasionally post harsh criticism of a product or service on a company's social media site. Social media experts say that not every comment on the Web merits a response. Concisely describe the circumstances that merit a professional response to an online post. Then describe the guidelines you should follow when composing to customers online.
Look for _____ in research information showing preferential treatment or consideration regardless of legitimate reasoning.
credibility
relevance
bias
additional sources
Answer:
bias
Explanation:
bias is the true anwer
in 2019, lemon incurred cost of goods sold of $69,763 million on net sales of $87,592 million. what was lemon’s return on sales ratio for 2019? (assume no other expenses.)
At a basic level, the cost of goods sold formula is: Starting inventory + purchases − ending inventory = cost of goods sold.
To make this work in practice, however, you need a clear and consistent approach to valuing your inventory and accounting for your costs.
How to calculate the cost of goods?
Businesses need to track all direct costs of processing goods for sale, including labor and material expenses. These costs are known as Cost of Goods Sold (COGS), a calculation that usually appears in a business’s Profit and Loss statement (P&L). COGS is also an important part of tax return information because who doesn’t want correct tax deduction? Knowing how to calculate COGS can help you determine the correct product price, detect growth opportunities, and manage your taxes.Cost of Goods Sold (COGS) represents all costs involved in producing goods that a company sells over a certain period of time. The cost of goods sold, also known as the cost of services or the cost of sales, includes both the cost of materials used to create the goods, and the cost of direct labor (employees salaries).COGS can be used by businesses that create products, including digital goods sold online. Besides that, companies in the service industry can also use COGS in the form of cost of revenue.
Beginning inventory: this is the company’s inventory from the previous period. It could be the previous quarter, month, year, etc.
Purchases: these are the total costs of what your company purchased during the specified accounting period.
COGS are simply the direct costs involved in the production of goods in a specific company for a certain period. The total amounts include components such as: Costs of materials: direct costs like supplies and raw materials. All indirect costs should be ignored and can’t be included in costs relating to the calculation of COGS. An indirect cost can include expenses such as marketing or sales expenses .Direct labor costs: the wages directly paid to employees who work on the company’s products during the manufacturing process.
1. First, subtract the cost of goods sold ($69,763 million) from the net sales ($87,592 million) to find the gross profit.
Gross Profit = Net Sales - Cost of Goods Sold
Gross Profit = $87,592 million - $69,763 million
Gross Profit = $17,829 million
2. Next, divide the gross profit by the net sales to find the return on sales ratio.
Return on Sales Ratio = Gross Profit / Net Sales
Return on Sales Ratio = $17,829 million / $87,592 million
Return on Sales Ratio = 0.2037 (rounded to four decimal places)
3. Finally, multiply the ratio by 100 to express it as a percentage.
Return on Sales Ratio = 0.2037 * 100
Return on Sales Ratio = 20.37%
So, Lemon's return on sales ratio for 2019 was 20.37%.
To know more about this cost of goods:
https://brainly.com/question/27748179
#SPJ11