All of the Following Statements Regarding Profit Margin Are True

question 65

Multiple Choice

All of the following statements regarding profit margin are true except:

• A) Profit margin is not a useful measure of a company's operating results.
• B) Profit margin is also called return on sales.
• C) Profit margin can be used to compare a firm's performance to its competitors.
• D) Profit margin reflects the percent of profit in each dollar of revenue.
• E) Profit margin is calculated by dividing net income by net sales.

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Definitions:

Effective Manager

A manager who achieves organizational goals efficiently and effectively through planning, organizing, leading, and controlling.

Outcomes

Refers to the results or consequences that arise from a specific set of actions or conditions.

Upward Delegation

Means passing problems or responsibilities upward in the hierarchy.

Delegation

The process of assigning responsibility and authority to others to carry out specific tasks or functions.