Selling, General & Administrative E

Selling, General & Administrative Expenses (SG&A expenses) in 2013 jumped 27.03 percent to VND3 billion, up VND650 million from 2012. SG&A expenses consisted of the combined payroll costs (salaries, commissions, and travel expenses of executives, sales people and employees), and advertising expenses a company incurs. High SGA expenses could be a serious problem for almost any business. It should be vital to keep operating expenses as low as possible, while not damaging the underlying business. There was strong cost-reduction pressure on administrative expenses, since they did not directly contribute to sales, and so only had a negative impact on profits. However, many of them were fixed in nature, and so could be fairly difficult to eliminate in the short term.
Increased SG&A expenses leaded to a steep drop in operating profit of the company this year. As can be seen in table 2.2, 2013 operating profit fell 50.22 percent to VND321 million from VND645 million in 2012. Since the company experienced declining operating income, there would be less money for owners, expansion, debt reduction, or anything else management hopes to achieve.
The operating profit margin was just 1.86percent with the downward trend. The low operating profit margin showed that the operational activities were not efficiency and the company did not generate much profit on its primary business activities. This was an indication that costs need to be under better control. It was a big problem because a healthy operating margin is required for the company to be able to pay for its fixed costs, such as interest on debt. A low operating profit margin could leave the company very little room to lower selling prices that was necessary to have an edge over competition or to implement pricing strategies.

Kết quả (Anh) 1:

Selling, General & Administrative Expenses (SG & A expenses) in 2013 jumped 27.03 percent to 000 billion, up VND650 million from 2012. SG & A expenses consisted of the combined payroll costs (salaries, commissions, and travel expenses of executives, sales people and employees), and advertising expenses a company incurs. High SGA expenses could be a serious problem for almost any business. It should be vital to keep operating expenses as low as possible, while not damaging the underlying business. There was strong cost-reduction pressure on administrative expenses, since they did not directly contribute to sales, and so only had a negative impact on profits. However, many of them were fixed in nature, and so could be fairly difficult to eliminate in the short term.Increased SG & A expenses leaded to a steep drop in operating profit of the company this year. As can be seen in table 2.2, 2013 operating profit fell 50.22 percent to VND321 million from VND645 million in 2012. Since the company experienced declining operating income, there would be less money for owners, expansion, debt reduction, or anything else management hopes to achieve. The operating profit margin was just 1.86 percent with the downward trend. The low operating profit margin showed that the operational activities were not efficiency and the company did not generate much profit on its primary business activities. This was an indication that costs need to be under better control. It was a big problem because a healthy operating margin is required for the company to be able to pay for its fixed costs, such as interest on debt. A low operating profit margin could leave the company very little room to lower selling prices that was necessary to have an edge over competition or to implement pricing strategies.

Kết quả (Anh) 2:

Selling, General & Administrative Expenses (SG & A Expenses) in 2013 jumped 27.03 percent to VND3 Billion, up VND650 million from 2012. SG & A Expenses consisted of the combined payroll Costs (salaries, Commissions, and travel Expenses of executives, sales people and employees), Expenses a company incurs and advertising. High SGA Expenses could be a serious problem for almost any business. It should be Vital to keep as low as possible The operating Expenses, while not damaging the underlying business. There was strong pressure on the administrative cost-reduction Expenses, since chúng did not trực Contribute to sales, and so only had a negative impact on Profits. Tuy nhiên, many of Them Were print fixed nature, and so could be fairly Difficult to Eliminate in the short term.
Increased SG & A Expenses leaded to a steep drop operating profit of the company printed this year. As can be seen printed table 2.2, in 2013 operating profit to VND321 million Fell 50.22 percent from 2012. Since the VND645 million printing company experienced declining operating income, there would be less money for owners, expansion, debt reduction, or anything else to management Hopes Achieve.
The operating profit margin was just with the downward trend 1.86percent. The low operating profit margin showed hoạt rằng operational efficiency and the company were not generate much profit did not on its primary business Activities. This was an indication mà Costs need to be under better control. It was a big problem a healthy operating margin vì is required for the company to pay for its thể Costs fixed, interest on debt như. A low operating profit margin could leave the company very little room to lower selling prices to have an cần That Was edge over competition or pricing strategies to implements.