Business – 10.2 Analysis of published accounts – Profitability ratios | e-Consult
10.2 Analysis of published accounts – Profitability ratios (1 questions)
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Two common internal methods are:
- Cost reduction: Cutting unnecessary expenses, such as renegotiating supplier contracts, which lowers the cost of goods sold and increases gross profit.
- Process efficiency improvements: Implementing lean manufacturing to reduce waste and speed up production, which raises output without a proportional rise in costs.