The formula to calculate the Percentage of Cost (POC) is:
\[ POC = \frac{P}{C} \times 100 \]
Where:
The Percentage of Cost is a measure used to determine the proportion of profit relative to the cost. It is calculated by dividing the profit amount by the cost amount and then multiplying by 100. This percentage helps in understanding the profitability and efficiency of an investment or business operation.
Consider an example where:
Using the formula to calculate the Percentage of Cost:
\[ POC = \frac{200}{500} \times 100 = 40 \% \]
This means that the percentage of cost for this example is 40%.