Friends~ Let us start today’s annual report knowledge with a happy mood——

Operating income, operating costs, three fees and the proportion of three fees

1. What is operating income? In fact, you can understand it just by looking at the literal meaning~

Operating income is the income earned by an enterprise from selling products or providing services during its business activities.

For example, Xiaoxiao Milk Tea Shop sold 100 cups of milk tea today at 5 yuan per cup. Then the 500 yuan is the operating income of Xiaoxiao Milk Tea Shop.

2. Operating cost, as the name suggests, is the cost of each cup of milk tea in Xiao Xiao Milk Tea Shop~ Assuming that the cost of each cup of milk tea is 2 yuan, then the cost of 100 cups of milk tea sold today is 200 yuan~< /p>

Definition of operating costs: the direct costs necessary for a company to produce and sell products or services related to its main business. It is clear that it is a direct cost, so the cost of renting a store is not allocated to the operating costs. So which item is included in the cost of renting a store? Let's read on

3. Friends may ask what are the three wastes? Are they the three wastes of exhaust gas, waste water and waste residue? NONONONO~

This fee is not a waste of the other

The three fees refer to sales expenses, management expenses, and financial expenses

①Sales expenses refer to the company’s sales expenses Various expenses incurred in the process of finished products, self-made semi-finished products and industrial labor services. In order to increase sales, Xiaoxiao Milk Tea Shop hired two handsome guys to distribute flyers. The cost of hiring handsome guys to distribute flyers was considered a sales expense.

② Management expenses refer to various expenses incurred by the administrative department of the enterprise for management and organization of operations. The monthly rent of Xiaoxiao Milk Tea Shop and the salary of the clerk are management fees~

④Financial expenses refer to the expenses incurred by the enterprise to raise funds required for production and operation, including interest expenses (, exchange losses , and related handling fees, etc.

OK, now that we understand what the three fees are, what is the proportion of the three fees?

The proportion of the three fees = (sales fee) + administrative expenses + financial expenses)/operating income

The three-fee ratio is a company's all expenses except taxes and costs, which reflects a company's cost control ability. The lower the three-fee ratio, the better. The lower the company's operating costs. The three-fee station ratio has a slightly different name in Hong Kong stocks: sales and distribution expenses = sales expenses?

Administrative + R&D expenses = management expenses

? Financing Cost = financial expenses

Explanation of terms: 1. Industrial labor services Industrial labor services refer to the industrial labor services provided by the enterprise providing labor services, such as processing operations, equipment technology transformation services, etc.

< p> What about processing operations and equipment technological transformation? I searched on Baidu for a long time but couldn't find a specific definition, but I still felt that the specific meaning of this word was very vague, so I searched for some photos and discussed them with each other.

Non-industrial labor services refer to other general labor services, such as transportation, storage, packaging, maintenance, etc.

2. Exchange losses/gains refer to the difference between the bank’s buying and selling price and the exchange rate used for accounting

Tomorrow’s knowledge points: asset impairment losses, investment income, operating profits, non-operating income, non-operating expenses

? Stay tuned~