The Measure (Ratio) That Reflects the Performance of a Manager

question 94

Multiple Choice

The measure (ratio) that reflects the performance of a manager regarding sales and cost of goods sold, but not other operating costs and income taxes, is called the:

• A) gross margin ratio.
• B) profit margin ratio.
• C) operating margin ratio.
• D) contribution margin ratio.

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Definitions:

Normally Distributed

Refers to a type of continuous probability distribution where data points are symmetrically distributed around the mean, forming a bell-shaped curve.

Variance

A measure of the dispersion or spread of a set of data points in a data set, representing the average squared deviation from the mean.

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, commonly used in statistical analyses.

Mean

The arithmetic average of a set of values or measurements, calculated by summing them all up and dividing by the number of values.