Profitability calculation

The problem of efficiency of commercial activity worries every Manager, because it is the owner of the enterprise is interested in the profitability of the business. Efficiency can be defined as the ratio between the result and the resources spent.
Performance indicators can be divided into forward and reverse. Direct performance indicators represent the output of which show what a standard unit of outcome obtained with a conventional unit costs to receive it. Reverse the indicators of effectiveness represent the coefficients of capacitance, which illustrate how unit costs necessary to obtain the conventional unit result. Continue reading →