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Profit Margin Is Calculated by Dividing Net Income by Sales

question 131

True/False

Profit margin is calculated by dividing net income by sales.


Definitions:

Process-focused Shop

A manufacturing or service setting where operations are organized around particular processes or tasks to improve efficiency and flexibility.

Repetitive Manufacture

A production process characterized by the continuous, sequential production of identical products without significant changes in design or setup.

Crossover Point

The point at which two different production, operation, or financial methods result in the same cost, beyond which one method becomes more cost-effective than the other.

Service Productivity

Service Productivity refers to the efficiency with which a service sector business or organization turns inputs (like labor, capital, and materials) into services, measuring output in relation to input.

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