Created by: AccountingSuite™
Gross Margin Report
The Gross Margin Report looks at the percentage and profit margin based solely on sales and the cost of producing those sales. For financial reporting, it gives you a picture of how much revenue is left after deducting all the direct costs of producing and selling the product. Gross Margin is the “KING” and is a key indicator to watch for any business.
Information: Gross Margin Report
In Product companies, Gross Margin is “KING” and a key indicator to watch in the business. The higher the gross margin percentage the better. The gross margin report comes in two forms, percentage and profit. The most important metric shows the business owners how much money the have left over after selling a product to cover the company’s general expenses. Users might run the report selecting last cost, historical average cost, or item unit cost along with last price, historical average price or item unit price.
The Gross Margin report mat be used separately or viewed from the KPI Inventory Dashboard by clicking on the bar in Inventory Turnover Rate.