Operating Expenses in Retail Drug Stores in 1919
Operating Expenses in Retail Drug Stores in 1919
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Sixteen drug stores among those for which reports were received showed a net loss; the heaviest ^net loss was 6. 3% of net sales. It is worth noting that the drug store with the heaviest net loss was the one that showed the highest total expense. The drug store with the highest net profit, on the other hand, 19. 4% of net sales, had the lowest total ex- pense. These facts emphasize the importance of economy in management as the chief means of securing substantial net profits.
STOCK-TURN The rat...e of stock-turn indicates the rapidity with which merchandise in stock is sold and replaced with fresh supplies. Ordinarily it is one of the most significant indices to the prosperity of a retail store. The rate of stock- turn is de- termined by dividing the average inventory of merchandise into the cost of the goods sold, not into sales. If monthly inventory figures were available, the average of these figures would be used as the divisor in determining the rate of stock- turn. Few stores, however, have monthly inventory figures; consequently the Bureau has used the average of the inven- tories of merchandise at the beginning and end of the year.
What to read after Operating Expenses in Retail Drug Stores in 1919?
You can find similar books in the "Read Also" column, or choose other free books by Harvard University Bureau of Business Research to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
Sixteen drug stores among those for which reports were received showed a net loss; the heaviest ^net loss was 6. 3% of net sales. It is worth noting that the drug store with the heaviest net loss was the one that showed the highest total expense. The drug store with the highest net profit, on the other hand, 19. 4% of net sales, had the lowest total ex- pense. These facts emphasize the importance of economy in management as the chief means of securing substantial net profits.
STOCK-TURN The rat...e of stock-turn indicates the rapidity with which merchandise in stock is sold and replaced with fresh supplies. Ordinarily it is one of the most significant indices to the prosperity of a retail store. The rate of stock- turn is de- termined by dividing the average inventory of merchandise into the cost of the goods sold, not into sales. If monthly inventory figures were available, the average of these figures would be used as the divisor in determining the rate of stock- turn. Few stores, however, have monthly inventory figures; consequently the Bureau has used the average of the inven- tories of merchandise at the beginning and end of the year.
What to read after Operating Expenses in Retail Drug Stores in 1919?
You can find similar books in the "Read Also" column, or choose other free books by Harvard University Bureau of Business Research to read onlineMoreLess
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