Profit Margin Is Calculated by Dividing Net Sales by Net

question 109

True/False

Profit margin is calculated by dividing net sales by net income.

Understand the role of product attributes and salient attributes in positioning strategies.

Comprehend the importance of evaluating segment attractiveness in targeting decisions.

Recognize the applications and implications of customization and mass customization in targeting and positioning.

Describe and apply the concept of value proposition in marketing.

---

Definitions:

Adjusted Cost of Goods Sold

The cost of goods sold that has been adjusted for changes in inventory levels or valuation methods.

Overapplied Manufacturing Overhead

A situation where the allocated amount of manufacturing overhead costs exceeds the actual overhead costs incurred.

Unadjusted Cost of Goods Sold

The initial calculation of the cost of goods sold that has not been modified for returns, allowances, or discounts.

Overapplied Manufacturing Overhead

A scenario where the allocated manufacturing overhead costs exceed the actual overhead costs incurred, resulting in a credit balance.