Operating Expenses in Retail Jewelry Stores in 1919
The book Operating Expenses in Retail Jewelry Stores in 1919 was written by author Harvard University Bureau of Business Research Here you can read free online of Operating Expenses in Retail Jewelry Stores in 1919 book, rate and share your impressions in comments. If you don't know what to write, just answer the question: Why is Operating Expenses in Retail Jewelry Stores in 1919 a good or bad book?
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4 %. Total interest includes interest on capital-owned as well as interest on capital-borrowed. In arriving at the cost of doing business total interest is an important figure to consider. The Bureau found many cases in the jewelry trade, as in other businesses, where the owner was satisfied with the returns from his store until an analysis of his profit and loss state- ment showed that he had not figured interest on his invest- ment as a part of his expense, and that, as a matter of fact, his ...net return from the store was less than he would have received in interest had he invested the same amount of capital in reliable securities. It is, moreover, obviously impossible to compare the expense figures of a firm doing business on its own capital with those of a firm that has to borrow much of its money from a bank, unless interest is computed on the total amount invested in the business regardless of whether it was borrowed or owned by the proprietor or partners. Hence, for those reports that gave no figures for interest on capital- owned, the Bureau computed interest at the local rate on the net worth of the business, as determined from the balance sheet figures submitted by the retailer.
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