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Definition of Gross sales
The total sales recorded prior to sales discounts and returns.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Days' sales outstanding
Average collection period.
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
Gross Domestic Product
Total output of final goods and services produced within a country during a year.
Gross domestic product (GDP)
The market value of goods and services produced over time including the
Interest earned before taxes are deducted.
Revenues less the cost of goods sold.
gross margin, or gross profit
This first-line measure of profit
Gross National Product
Total output of final goods and services produced by a country's citizens during a year.
Gross national product (GNP)
Measures and economy's total income. It is equal to GDP plus the income
The amount of earnings due to an employee prior to tax and other deductions.
The profit a company makes before expenses and taxes are taken away.
The difference between the price at which goods or services are sold and the cost of sales.
The result of subtracting cost of goods sold from sales. Synonymous with gross margin.
Revenue less cost of goods sold.
Gross profit margin
gross profit divided by sales, which is equal to each sales dollar left over after paying
Gross Profit Margin
gross profit divided by revenue.
The fraction of the gross proceeds of an underwritten securities offering that is paid as
Total revenue, less the cost of sales returns, allowances, and discounts.
NUMBER OF DAYS SALES IN RECEIVABLES
(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet.
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
return on sales
This ratio equals net income divided by sales revenue.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A reduction in a price that is allowed by the seller, due to a problem
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A reduction in the price of a product or service that is offered by the
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A key input to a firm's financial planning process. External sales forecasts are based on
A journal used to record the transactions that result in a credit to sales.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
the relative combination of quantities of sales of the various products that make up the total sales of a company
A contra account that offsets revenue. It represents the amount of sales made that were later returned.
Sales Revenue Revenue recognized from the sales of products as opposed to the provision of
A tax levied as a percentage of retail sales.
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
Lease accounting used by a manufacturer who is also a lessor. Up-front gross
Sales value at split-off
A cost allocation methodology that allocates joint costs to joint
sales value at split-off allocation
a method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products
Well, frankly, accrual is not a good descriptive
The sales level at which a company, division, or product line makes a
An accounting statement that summarizes information about a company in the following format:
This is a key factor in the profit model of a business. Product
Ratios based on sales revenue for a period. A measure of
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