Which of the Following Statements Is Not True Regarding Net

question 40

Multiple Choice

Which of the following statements is not true regarding net profit margin?

• A)If a company's net profit margin increases from 15% to 20% this would be considered an improvement in profitability.
• B)A company with a net profit margin of 10% may be evaluated differently depending upon which industry it is in.
• C)A company with a net profit margin of 10% is using 90% of each dollar of revenue to cover costs and expenses.
• D)Net profit margin indicates how much revenue is earned for every dollar of net income.