The Gross Margin Ratio

question 56

Multiple Choice

The gross margin ratio:

• A)Is also called the net profit ratio.
• B)Indicates the percent of sales revenue remaining after covering the cost of the goods sold.
• C)Is also called the profit margin.
• D)Is a measure of liquidity and should exceed 2.0 to be acceptable.
• E)Should be greater than 1 for merchandising companies.

---

Definitions:

String Theory

A theoretical framework in physics that proposes that the fundamental particles are not point-like dots, but rather tiny, vibrating strings.

Variable

An element, feature, or factor that is likely to vary or change.

Hypothesis

A proposed explanation or assumption for a phenomenon, made as a starting point for further investigation, testable by experimentation or observation.

Operationalization

The process of defining a research variable or concept so that it can be measured or expressed quantitatively or qualitatively.