Asked by Tharushi Fernando on May 05, 2024
Verified
Total Expenses ÷ Total Number of Procedures for One Month
A) accounting formula
B) accounts receivable ratio formula
C) gross collection ratio formula
D) net collection ratio formula
E) cost ratio formula
F) assets
G) write-offs
H) liabilities
I) accounts receivable
J) income statement
Cost Ratio Formula
A mathematical formula used to determine the costs associated with producing goods or services in relation to the revenue they generate.
Total Expenses
The sum of all expenditures incurred by an individual or organization, including operational, capital, and other miscellaneous costs.
- Identify the equations employed in computing financial ratios and their uses.
Verified Answer
ND
Nirmal DominicMay 12, 2024
Final Answer :
E
Explanation :
The term "Total Expenses ÷ Total Number of Procedures for One Month" is best described as a cost ratio formula, which is used to determine the average cost per procedure by dividing the total expenses by the total number of procedures within a specific time frame, typically one month.
Learning Objectives
- Identify the equations employed in computing financial ratios and their uses.
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