Which of the Following Statements Is true Regarding Profit Margin

question 209

Multiple Choice

Which of the following statements is true regarding profit margin?

• A)Profit margin can be improved by decreasing the gross profit rate and/or controlling operating expenses and other costs.
• B)Profit margin does not vary across industries.
• C)Discount stores with high merchandise turnover generally have higher profit margins.
• D)If the profit margin has a higher value, this suggests favorable return on each dollar of sales.

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Definitions:

Generalizable

The extent to which findings from a study can be applied or extended to larger populations beyond the sample studied.

Client Variables

Aspects or characteristics of clients that might influence the outcome of a service, program, or study, such as their background or personal preferences.

Psychological Experiments

Research methods in psychology that involve manipulating one variable to determine its effect on another variable.

Generalizability

The extent to which the findings of a study can be applied to other groups, settings, or times, beyond the specific conditions of the original study.