The cloud service provider is different in that it hosts, controls, and maintains the computational and physical resources in its own data centres.
For instance, if the historical cost of products sold as a proportion of sales was 42%, the anticipated sales level would be 42% as well. The method can also be used to forecast some balance sheet entries, including inventory, accounts payable, and accounts receivable.
The expenditure ratio is the formula for calculating sales as a percentage of total sales. Divide operating expenses by net sales to determine it, then convert the answer to a percentage.
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