Join Rudolph Rosenberg for an in-depth discussion in this video Finding the data points, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…Gross margin, as we have already seen, is equal to revenue minus cost of production.…That means that to calculate the gross margin of something, an invoice,…a product, a month, you need to have the corresponding revenue and…the corresponding cost of production.…There are many ways to do that and…many agitated discussions in the financial world around the best way to do it.…In this course, we'll stay away from those discussions and…focus on a simple and practical technique to do it.…
Our objective here is to get you going as fast as possible with a solid approach.…We have already seen everything we need to know about getting the revenue element of…that computation.…So we will focus our efforts here on the cost of production side.…We will learn here how to calculate what are called Standard costs.…Let me start with an illustration of the problem we will be solving.…To do that, let's get back to our pen business example.…So, we are running a pen business.…In essence, we buy raw material, send it to our factory,…
Also check out the companion course, Financial Analysis: Analyzing the Top Line with Excel.
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- Finding data points
- Prepping data
- Calculating standard cost and gross margins
- Analyzing overall gross margin performance
- Analyzing individual and overall expenses