How to determine the standards of various expenses such as the proportion of sales revenue?

Generally speaking, the proportion mentioned in finance refers to the percentage of operating income, and operating costs are rarely used. The proportion of company expenses here is obtained by dividing the total expenses of your company by your total operating income in the current period.

Income-expense ratio

The monthly percentage of expenses in the three periods of "management expenses", "sales expenses" and "financial expenses" in the main business income. The calculation formula is: total expenses during the period/main business income * 100%.

This ratio is called expense ratio, which can be calculated and assessed according to your own needs in the financial index system. Expense rate is an index to assess the level of expenses and strengthen management, which can explain some problems, generally internal management index, and it has been applied very well in the three financial indicators stipulated for enterprises in the General Principles of Enterprise Finance.

Extended data:

There are two ways to confirm sales revenue.

One is cash basis. According to the cash basis principle, the confirmation of enterprise sales is marked by whether the payment is received. Sales are confirmed when payment is received.

The other is accrual basis. According to the principle of accrual basis, the confirmation of enterprise sales is not based on the receipt of payment, but on the realization of sales.

The so-called sales realization (or sales establishment) generally has two signs: one is the transfer of property rights; The second is to receive the money or obtain the claim for the money. The above two conditions must be met at the same time to be confirmed as sales realization. The new financial system adopts the accrual basis principle. Enterprises generally confirm the realization of sales revenue when the products have been issued, the services have been provided, the price has been received or the credentials for collecting the price have been obtained.

References:

Baidu Encyclopedia-Sales Revenue