📅 Thursday, May 16th, 2024

I cannot give you the formula for success, but I can give you the formula for failure: which is: Try to please everybody.

— Herbert Bayard Swope

MGT011A Lecture: midterm breakdown

gross profit = sale price - COGS
net sale = sale price - discounts - returns - allowances
gross profit percentage = gross profit on sales / net sales
- key measure of profitability
- measures company’s ability to sell at acceptable prices

Usually, to not overstate revenue, the company will add adjusting entries accounting for the predicted returns.