Financial Aspects of Marketing by Ruth A. Schmidt, Helen Wright PDF

By Ruth A. Schmidt, Helen Wright

ISBN-10: 0333637828

ISBN-13: 9780333637821

ISBN-10: 1349250201

ISBN-13: 9781349250202

ISBN-10: 1771771771

ISBN-13: 9781771771771

It is a center textual content for college students learning the monetary points of selling for the 1st time. It strikes systematically in the course of the matters lined within the majority of classes, reinforcing studying via a couple of pedagogical positive factors together with:

*numerous workouts and examples

*learning ambitions firstly of every bankruptcy and summaries on the finish

*case reviews to drag jointly the components to date coated

The use of spreadsheets is built-in into the textual content.

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Sample text

LIFO basically follows the same princtple as FIFO, only in reverse. This time the assumption is made that the first items to be sold are the last to come into the business. Thus stock sold is always valued at the latest cost prices, leaving the earlier prices to be applied to closing stock valuation. This method is not used in the UK; however, you may come across it when looking at US business accounts. 4 Profit calculation: the impact of stock valuation A knowledge of the different methods of stock valuation and their respective impact on the calculation of gross and net profit is very useful when you wish to compare the accounts of companies, within the UK or across different countries, as it will allow you to adjust your calculations for the differences in accounting practice.

So, first of all let us consider the cash flow position of jean Bean's business. 3 shows what a cash flow statement looks like in the case of jean's business. 3 JEAN BEAN'S BUSINESS: CASH FLOW STATEMENT 1 MARCH TO 31 MARCH 199X £ Opening Balance + Receipts 1000 0 Payments 900 Closing Balance 100 As the cash flow statement is about changes in the cash position of the business over a period of time, it is important to put the start and end dates for this period on top of the statement. The OPENING BALANCE is the amount of cash held by the business on the start date.

4. Using the LIFO method of stock valuation, closing stock is valued at £2800. LIFO basically follows the same princtple as FIFO, only in reverse. This time the assumption is made that the first items to be sold are the last to come into the business. Thus stock sold is always valued at the latest cost prices, leaving the earlier prices to be applied to closing stock valuation. This method is not used in the UK; however, you may come across it when looking at US business accounts. 4 Profit calculation: the impact of stock valuation A knowledge of the different methods of stock valuation and their respective impact on the calculation of gross and net profit is very useful when you wish to compare the accounts of companies, within the UK or across different countries, as it will allow you to adjust your calculations for the differences in accounting practice.

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Financial Aspects of Marketing by Ruth A. Schmidt, Helen Wright


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