Which of the Following Statements Regarding Net Margin Is Not

question 146

Multiple Choice

Which of the following statements regarding net margin is not true?

• A)Net margin refers to the percentage of each sales dollar remaining after all expenses are subtracted.
• B)Net margin may be calculated in several ways.
• C)The amount of net margin is affected by a company's choices of accounting principles.
• D)The larger the net margin the better.

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Definitions:

Concrete

A composite building material composed of fine and coarse aggregates bonded together with a fluid cement that hardens over time, used extensively in construction.

Heat Produced

The amount of energy released or absorbed as heat during a chemical or physical transformation.

Aluminum

A silvery-white, soft, nonmagnetic, ductile metal in the boron group, noted for its lightweight and resistance to corrosion.

Silica Glass

A type of glass made primarily of silicon dioxide (SiO2), known for its transparency and chemical stability.