The profit rate of cost and expense is an important index for enterprises to measure their operating efficiency. It reflects the operating results brought by the operating expenses of an enterprise in a certain period of time. The calculation method of cost profit rate is as follows:
Cost profit rate = (total profit/total cost) × 100%
Among them, the total profit is the net profit of the enterprise in a certain period, and the total cost includes the main business cost, main business tax and surcharge, operating expenses, management expenses and financial expenses of the enterprise.
The above information is for reference only. It is recommended to consult professional financial professionals or consult relevant books to obtain more comprehensive and accurate information.
In order to evaluate the operating efficiency of enterprises more accurately, the composition of costs and expenses can be further refined. For example, costs can be divided into direct material costs, direct labor costs, manufacturing costs and so on. And then you can calculate the profit rate of these costs separately.
The role of cost profit rate is mainly reflected in the following aspects:
Reflect the profitability of enterprises: the higher the cost profit rate, the stronger the profitability of enterprises, and vice versa.
Guide enterprises to carry out cost control: By comparing the profit rate of costs and expenses in different periods, enterprises can understand their own cost control, so as to take targeted measures to reduce costs and improve profit rate.
Evaluate the operating efficiency of an enterprise: the profit rate of cost and expense can reflect the operating efficiency of an enterprise in a certain period of time, help enterprises find problems in operation and adjust their operating strategies in time.
Auxiliary decision-making: In investment decision-making, an enterprise can judge its profitability and investment value according to the cost and profit rate of the target industry.
In a word, the profit rate of cost and expense is one of the important basis for enterprise managers to make decisions, which can help enterprises achieve their business goals better.
To sum up:
The calculation method of cost profit rate can help enterprises understand their operating efficiency and guide enterprises to effectively control costs and allocate resources. By paying attention to the changes of cost and profit rate, enterprises can find and solve problems in operation in time, thus improving profitability.
Legal basis:
The provisions of the Accounting Law of People's Republic of China (PRC) on the profit rate of costs and expenses are as follows:
_ Article 36: An enterprise shall, according to the relevant data in the financial accounting report, calculate the profit rate of costs and expenses, return on assets and other indicators, and evaluate the operating efficiency of the enterprise.
_ Article 41 An enterprise shall, in accordance with the provisions of the state, submit financial and accounting reports to the relevant departments on a regular basis and accept supervision and inspection.
The above contents are for reference only. If necessary, please refer to the relevant websites.