DIFFICULT OR NOT?

             Business Math in Industrial Design! This is actually a part of the course i am taking in right now. and this would be an exciting way to share my thoughts, ideas and what i have learned. Thanks to my professor of course, Mr. Cris Paner for introducing blogging. Soooo, I just wanted to share what business math is all about. Sounds hard right? i knoooooow! however lets look at the brighter side my friends! This will be a CLEARER VIEW of where our  MONEY goes to when we buy things. also, to people who wants to open their own business like me. There's just so much in store for everyone of us. we just have to look closely to numbers. especially when it comes to money.

What i learned this week: serious mode


PROFIT and LOSS
PROFIT is a word i wanted to call BENEFIT. something that we gain, everybody has benefits however for businesses it means a lot. it is considered in which the sales are greater than the original price of the product. 




DIAGRAM 1
           

                    GROSS SALES

-                   SALES RETURN AND ALLOWANCES

------------------------------------------------------------------------

                     NET SALES 

-                   COST OF GOODS SOLD

------------------------------------------------------------------------

                    GROSS PROFIT

-                   OPERATING EXPENSES

------------------------------------------------------------------------

                     NET PROFIT

BIG WORDS RIGHT?

so i listed the definitions to make it easier to understand. :)

1) Gross sales - actual amount received for selling the goods

2) Sales return and allowances - amounts returned/ refunded usually if goods are defective.

3) Net sales - obtained when refunds are being deducted from the gross sales.

4) Cost of goods sold - buying price.

5) Gross profit - difference between revenue and the cost of making a product or providing a service.

6) Operating expenses - also called OPEX is an ongoing cost for running a product, business or system. it may also include the rents and utilities.

7) Net profit - a measure of the profitability of a venture after accounting for all cost.

DIAGRAM  2

                  BEGINNING INVENTORY

+                PURCHASES

-------------------------------------------------------------------

                  GOODS FOR SALE

-                 ENDING INVENTORY

-------------------------------------------------------------------

                  COST OF GOODS SOLD

That should be it for now! 

for questions and suggestions just post a comment! hold on to your calculators. :)

bye loves! 

Its just a little bit of math. :)