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6. The assumption of linear property of total cost and total revenue relies on the assumption that unit variable cost and selling price are always constant. In real life it is valid within relevant range or period and likely to change. [2]
In economics, gross output (GO) is a measure of the value of production of new goods and services during an accounting period.Gross output represents the total value of sales by producing enterprises (their gross revenue or turnover) in an accounting period (a quarter or a year), before subtracting the value of intermediate goods used up in production from the value of sales.
In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.
The COGS formula is the same across most industries, but what is included in each of the elements can vary for each. It should be calculated as: Operating Profit Margin = 100 ⋅ Operating Income Revenue {\displaystyle {\text{Operating Profit Margin}}={100\cdot {\text{Operating Income}} \over {\text{Revenue}}}}
Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage .
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is often compared to a sales tax ; the difference is that a gross receipts tax is levied upon the seller of goods or services, while a sales tax is nominally levied upon the buyer (although both are ...
The basic equation for gross domestic product is also an identity, and is sometimes referred to as the National Income Identity: [8]. GDP = consumption + investment + government spending + (exports − imports).
These companies tend to report "revenue" based on the monetary value of income that the services provide. ... Gross profit margin or Gross Profit Rate [8] [9]