How does the cost to profit margin come about?

Cost Profit Margin = Profit Cost Expense.

According to the Provisions on Several Specific Issues of Value Added Tax (Guo Shui Fa [1993] No. 154) and the Provisions on Several Specific Issues of Consumption Tax (Guo Shui Fa [1993] No. 156):

If a taxpayer is required to form a taxable ** to determine sales amount due to reasons such as obviously low sales ** or no sales**, the cost profit rate in the group price formula is 10%. However, for goods subject to consumption tax at ad valorem rates, the cost-to-profit rate in the group price formula is the cost-to-profit rate specified in the Provisions on Several Specific Issues Concerning Consumption Tax.

The national average cost-to-profit margin for taxable consumer goods is stipulated as follows:

1.Class A cigarettes 10%;

2.Class B cigarettes 5%;

3.cigar smoke 5%;

4.tobacco 5%;

5.grain liquor 10%;

6.potato liquor 5%;

7.Other wines 5%;

8.alcohol 5%;

9.cosmetics 5%;

10.Skin care and hair care products 5%;

11.firecrackers and fireworks 5%;

12.Precious jewellery and jewellery and jade 6%;

13.5% for car tires;

14.6% for motorcycles;

15.8% for cars;

16.6% for off-road vehicles;

17.5% for passenger cars.

The national average cost profit margin of new and adjusted tax items is tentatively set as follows:

1) 10% for golf and golf equipment;

2) 20% for high-end watches;

c) 10% for yachts;

4) 5% for wooden disposable chopsticks;

5) 5% for solid wood flooring;

6) 8% for passenger cars;

7) 5% for medium and light commercial buses.

Calculation formula: cost profit margin = profit cost 100%, sales profit margin = profit sales 100%.

For example: the cost of an apple is 8 yuan, and it sells for 10 yuan. Then the profit is 10-8=2 pieces.

That is, the cost profit margin is 2 8 * 100% = 25%.

The sales profit margin is 2 10 * 100% = 20%.

The cost-to-profit ratio refers to the ratio of the total profit of the enterprise to the total cost of sales and manufacturing.

The cost-to-profit ratio reflects the amount of profit that can be obtained by an enterprise for each dollar of sales and manufacturing costs in a certain period.

The total cost is equal to the cost of doing business plus business tax and surcharge.

Plus selling expenses plus administrative expenses plus finance expenses.

1. Profit margin = profit cost 100%, profit margin is usually expressed as a percentage.

2. Cost profit margin = profit cost 100%.

3. Sales profit margin = profit sales 100%.

4. The rate of profit is the ratio of surplus value to all prepaid capital, and the rate of profit is the transformed form of the rate of surplus value, which is another ratio calculated by different methods for the same amount of surplus value.

5. If p represents the rate of profit and c represents the total prepaid capital (c+v), then the rate of profit p = m c = m (c + v). The profit margin reflects the relative index of the profit level of an enterprise in a certain period.

6. The profit margin index can not only assess the completion of the profit plan of the enterprise, but also compare the management level between enterprises and in different periods, so as to improve economic benefits.

Further information: The rate of profit is the ratio of surplus value to total capital advanced, and the rate of profit is the transformed form of the rate of surplus value, which is another ratio calculated by different methods for the same amount of surplus value. If p is the rate of profit and c is the total capital prepaid (c+v), then the rate of profit p = m c = m (c + v).

The profit margin reflects the relative index of the profit level of an enterprise in a certain period. The profit margin index can not only assess the completion of the profit plan of the enterprise, but also compare the management level of the enterprises and in different periods, so as to improve economic efficiency. Cost Margin = Profit Cost 100%, Sales Margin = Profit Sales 100%.

Net profit margin is defined as the percentage of net profit from operations as a percentage of net sales or as a percentage of invested capital. This percentage can comprehensively reflect the operating efficiency of a company or an industry. In accounting, profit can be divided into gross profit (the difference between the amount of goods sold and the cost of goods sold), operating profit (the difference between gross profit and operating expenses), and net profit (the difference between operating profit and income tax).

Gross profit margin = [(sales revenue - cost of sales) sales revenue] 100%, gross profit margin is the percentage of gross profit to sales revenue. It represents the initial profitability of the enterprise or company, and can indicate the added value of the enterprise or company's products, and the higher the sales gross profit margin, the higher the added value of the product.

The main factors that determine and affect profit margins:

1. The rate of surplus value. Other things being equal, the higher the residual stake value rate, the higher the profit margin; Conversely, the rate of surplus value is low, and the rate of profit is low. Thus, any method that increases the rate of surplus value will correspondingly increase the rate of profit.

2. Organic composition of capital. The organic composition of capital is high, and the profit rate is low; The organic composition of capital is low and the rate of profit is high.

3. Capital turnover speed. The acceleration of capital turnover increases the annual surplus value rate, which in turn also increases the annual profit margin. The annual rate of return of capital changes in the same direction as the rate of capital turnover.

4. Savings in constant capital. In the case of a certain rate of surplus value and the amount of surplus value, saving constant capital can reduce the advance capital and thus increase the rate of profit.

Cost-to-profit marginIt is obtained by the enterprise for a certain period of timeGross profitRatio to the total cost paid. It reflects the ability of the business to bring benefits from all the costs incurred in the current period, and the higher the ratio, the better the revenue benefit. It is calculated as follows:

Cost Profit Margin = Total Profit Total Cost 100%.

Whether it is individual labor or socially necessary labor, it can be divided into production costs.

and profits. These two parts of individual labour in an economy are generally referred to as individual production costs and individual profits, and these two parts of socially necessary labour are called average production costs and value profits, respectively. The average cost of production and the profit of value are the weighted average of the individual cost of production and the individual profit, respectively.

The effect of individual labour on the value of products in economies with different levels of technology is realized through their output weights. The output weight reflects the relationship between the technological level of the economy and the average technological level.

Therefore, it can be further argued that the socially necessary labor of a product is constituted by the cost of production and the profit determined by the weighted average level of technology at which the product is produced.