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    Four ratios for performing an audit

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    Which four ratios do you think would be helpful performing an audit of manufacturing company? Support your answer.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:11 pm ad1c9bdddf

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    Four ratios that will be useful are:

    Gross Margin Percentage.

    The gross margin percentage is defined to be the gross margin as a percentage of sales revenue.
    It indicates the operational efficiency. The gross margin percentage can be expected to improve as sales increase. This occurs because fixed manufacturing costs are spread across more units.
    Thus lower gross margin reveals operational ...

    Solution Summary

    This discusses the four ratios that would be helpful performing an audit of manufacturing company