Question

Sales ratio is used for allocation of?

Answer 1

Answer:

The ratio is used to assess whether the company's marketing and advertising resources are being used effectively to generate sales.

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Answer 2

Sales Ratio:

Question:

Sales ratio is used for allocation of?

• Sales ratio is  used for the allocation of certain expenses in relation to the sales.

• Sales ratio is also used for allocation of  Income tax

• It is calculated as follows:  

• Sales Ratio =      Cost of sales        

                                 Total Value of sales

• It also refers to the  total value that investors place on the company in comparison to the total revenue.