If Both Gross Profit Margin and Net Profit Margin Are

question 17

Multiple Choice

If both gross profit margin and net profit margin are increasing:

• A)net profit will be increasing
• B)net profit will be decreasing
• C)sales will be increasing
• D)it is not possible to tell

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Definitions:

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action or the benefits you miss out on when choosing one alternative over another.

Best Alternative

The Best Alternative usually refers to the most favorable option or choice that is available to an individual or organization from a set of possibilities.

Benefits

Forms of compensation provided to employees or the public, including health insurance, pension, and unemployment assistance.

Opportunity Cost

The cost of what is forgone in order to pursue a certain action; the value of the best alternative option that is not selected.