Managerial accountants may use data like cash flow, revenue, and profits to identify problems in the flow and cost of production, which affects profitability. Financial professionals calculate inventory managerial accounting turnover to determine how long it takes inventory to turn into revenue. This process helps companies manage inventory and keep the costs of goods and…

the gross profit does not take into account: does not account for debt expenses, taxes, or other expenses required to run the company. The gross profit formula is used to calculate the gross profit by subtracting the cost of goods sold from revenue. Revenue equals the total sales, and the cost of goods sold includes…