Coefficient of variation and Cost of goods sold: Difference between pages

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A measure of the variability of a distribution, expressed as a proportion of the expected value.
''Accounting''.  


It is calculated as:
The charge in an income statement relating to raw materials and goods purchased for resale.


Standard Deviation / Expected value


It is calculated as:


'''Example'''
Purchases


The Standard deviation of the Net Present Value of a project = $100m.
+ Opening stock


The Expected Net Present Value = $50m.
Less: Closing stock


Coefficient of variation is given by:
= Cost of goods sold


= $100m / $50m


= 2.0.
==See also==
 
*[[Income statement]]
 
*[[Turnover]]
== See also ==
* [[Expected value]]
* [[Net present value]]
* [[Standard deviation]]

Revision as of 12:32, 12 October 2016

Accounting.

The charge in an income statement relating to raw materials and goods purchased for resale.


It is calculated as:

Purchases

+ Opening stock

Less: Closing stock

= Cost of goods sold


See also