Monday, September 17, 2012

GMROS & Removing the average gross margin percentage goal from retail .

Management Accounting for Discounting: If GMROS is a better indicator of a part of an assortment's contribution to profit than gross profit percentage by itself, than company wide, store wide, department and SKU targets should be set in GMROS not gross profit percentage.

Note: To calculate how much space is being used, you can use the number of items in stock. See the Bottom Line Contribution below for an example.

E-mail: ajbrenninkmeijer (a)

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