ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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CONTRIBUTION/SALES RATIO Definition
CONTRIBUTION/SALES RATIO (C/S RATIO) is a tool used in profit management. It is important to establish the C/S RATIO: C/S ratio = (Sales revenue - Variable cost of sales)/Sales revenue x 100. If a company achieves a high average marginal profit ratio of say, 40%, it does not mean that it will achieve high profits. The eventual profit will be dependent on the level of fixed costs within the organization.
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IMPLIED DIVIDEND RATE is the basis for calculating yields on adjustable-rate preferreds; assumes that the dividend rate will remain the same as the index rate for all future dividends.
STATEMENT OF STOCKHOLDERS EQUITY is a summary of the changes in stockholders equity of a corporation that have occurred during a specific period of time.