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Cost Ratio = expenses/earnings

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Q: What is cost ratio calculated by?
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How dose the cost income ratio is calculated in the banking model?


The inventory turnover ratio is calculated by dividing cost of goods sold by?

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Calculate the break-even point?

Break-even point = Fixed cost / contribution margin ratio Contribution margin ratio = sales - variable cost / sales by using these equations break even point can be calculated


If unit sales are 12 variable costs are 7.20 per unit and fixed costs are 24000 what is the contribution ratio per unit?

The contribution ratio of units is calculated as the unit sales minus the sales cost, then divided by the unit sales. In this case, the ratio is 40 percent. Contribution Ratio does not care about the fixed cost whatsoever.


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formula for beverage cost ratio


Is a ratio the same as division?

No. A ratio is calculated using division but they are not the same thing.


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How is bank cost to income ratio calculated?

The cost/income ratio is an efficiency measure similar to operating margin. Unlike the operating margin, lower is better. The cost income ratio is most commonly used in the financial sector. It is useful to measure how costs are changing compared to income - for example, if a bank's interest income is rising but costs are rising at a higher rate looking at changes in this ratio will highlight the fact. The cost/income ratio reflects changes in the cost/assets ratio. The cost income ratio, defined by operating expenses divided by operating income, can be used for benchmarking by the bank when reviewing its operational efficiency. Francis (2004) observes that there is an inverse relationship between the cost income ratio and the bank's profitability. Ghosh et al. (2003) also find that the expected negative relation between efficiency and the cost-income ratio seems to exist. The study shows that the cost-income ratio is negative and strongly significant in all estimated equations, indicating that more efficient banks generate higher profits.


Who do you get percentage of loss to ratio?

% loss = ((selling price - cost)/cost x 100 Ratio of loss to cost? (selling price - cost)/cost


What is Differences between cost indifference point and break even point?

the point at which total cost lines under the two alternatives intersect each other. Cost indifference point is calculated as under: - Difference in fixed costs/ Difference in PV ratio.


How do you calculate Signal to Noise ratio?

It can be calculated by simplifying the ratio between power of signal by power of noise