CTD 231 Lecture Notes - Lecture 14: List Price, Gross Margin, Profit Margin

• School: University of Alabama
• Department: Clothing, Textiles and Interior Design
• Course: CTD 231
• Professor: Reaves

Document Summary

Productivity of one season with another through examination of the dollar monetary values. One business with another business through examination of percentages: figures are used to evaluate the firm"s performance for past season; basis for preparing next season"s strategic financial plan. Net sales: net sales revenues taken in by a firm after all returns and other required adjustments have been subtracted from gross (total) revenue taken in during a specific time period. If percentage is used, net sales are always 100: all other amounts on the profit and loss statement are referenced back to this net sales figure. Cost of goods sold: cost of goods sold typically drives developer"s involvement with financial matters; includes: Actual or estimated cost of finished goods and/or materials needed to produce product. Gross margin: gross margin left after cost of goods sold is subtracted from net sales. Indicates how well a business is doing in maintaining its margins for the time period.