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:

Social Proof

A mental phenomenon in which individuals mirror the behaviors of others, believing it to be the appropriate response for a particular scenario.

Advertiser

A person or organization that promotes products, services, or ideas through various forms of media to attract customers or supporters.

Effectiveness

The degree to which something is successful in producing a desired or intended result.

Efficiency

The ability to accomplish a task or goal with the minimal waste of time, effort, and resources.