Gross Profit Analysis
Gross Profit Analysis is the determination of the various causes for an increase or decrease in gross profit is similar to the computation of standard cost variances, although gross profit analysis is often possible without the use of standard costs or budgets. In such a case, prices and costs of the previous year, or any year selected as the basis for the comparison, serve as the basis for the calculation of the variances.
Gross Profit Analysis-Questions and Answers: Questions: Why is the gross profit figure significant? What causes changes in the gross profit? Explain “product mix” or “sales mix.” By what methods can a change in the gross profit figure be analyzed? Describe how the sales price
Gross Profit (GP) Analysis Case Study: Gross Profit analysis of time sharing computer programs: The senior system analysis of Tyrene, Inc. Bob Canedy, developed in his spare time three unique packages of computer programs: Package 1, inventory control; Package 2, sales analysis; Package 3;
Gross Profit Analysis Based on Budgets and Standard Costs: As the basis for illustrating the analysis of gross profit using budgets and standard costs, three financial statements for a company are presented: The budgeted income statement prepared at the beginning of the period The