MKT 310 Lecture Notes - Lecture 9: Gross Margin, Profit Margin, Operating Margin
Document Summary
Organizations need to track two aspects of a business: (1) what a company owns balance sheet: tracked w a balance sheet: displays everything a company owns less what they owe others. Can be generated at any point in time, can be done based on a day, but mostly done after a certain period like a fiscal year. A snapshot of the organization"s assets as of that date and time. About recording investments and debt (2) performance of a business income statement: tracked with income statements: indicates how the company is performing with respect to the revenue, profitability, or possible loss. Generated based on a period, indicating the profitability of the organization over that period. Looks at performance of the company over a month, over a quarter, or perhaps over a year. More concerned w aspects of this statement that deal w impacts of pricing decisions, for ex, than the balance sheet.
