All of the Following Statements Regarding Profit Margin Are True

question 157

Multiple Choice

All of the following statements regarding profit margin are true except:

• A)Profit margin reflects the percent of profit in each dollar of revenue.
• B)Profit margin is also called return on sales.
• C)Profit margin can be used to compare a firm's performance to its competitors.
• D)Profit margin is calculated by dividing net income by net sales.
• E)Profit margin is not a useful measure of a company's operating results.

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Definitions:

Learning Curve

A graphical representation that shows how learning or gaining experience increases efficiency or performance over time.

Polar Coordinate

A coordinate system where each point on a plane is determined by an angle and a distance from a fixed point, called the pole.