![]() There are specific costs that can be included in cost of goods sold, and they depend on the type of business. You may want to generate an inventory aging report to investigate why COGS are low and determine if this is normal in your industry or line of business. Moreover, if you have a low inventory turnover, it’s possible that COGS are also low, which is a possible indicator of slow sales. ![]() You use the ratio to analyze business activity and its relationship with overall profitability.
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