The Gross Margin Ratio

question 47

Multiple Choice

The gross margin ratio:

• A) Indicates the percent of sales revenue remaining after covering the cost of the goods sold.
• B) Should be greater than 1 for merchandising companies.
• C) Is a measure of liquidity and should exceed 2.0 to be acceptable.
• D) Is also called the net profit ratio.
• E) Is also called the profit margin.

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Definitions:

Broader Ways

Expanding or diversifying the manner in which something is approached, interpreted, or understood, contributing to a more encompassing or comprehensive perspective.

Media Text

Any written, visual, or auditory piece of material intended to convey information or messages via media platforms.

Society

Refers to a group of people living together in a more or less ordered community, sharing customs, laws, and organizations.

Early Rap Music

The genre of music that emerged in the 1970s in African American communities, characterized by rhythmic speaking set to beats.