In Order to Evaluate a Company's Gross Profit Ratio

question 152

Multiple Choice

In order to evaluate a company's gross profit ratio,

• A) the ratio should be compared with other companies in the same industry.
• B) the ratio should be compared with those of both prior years and competitors.
• C) the ratio should be compared with forecasted financial statements.
• D) the ratio should be compared with those of prior years.

---

Definitions:

Executive Succession

The process of planning for and implementing the transition of leadership roles within an organization, typically focusing on key executive positions.

Employee Database

A system that stores and manages data about an organization's employees.

General Manager

A high-ranking executive who has overall responsibility for managing both the revenue and cost elements of a company's income statement, known as the profit & loss (P&L) responsibility.

Job Specifications

A detailed description of the qualifications, skills, and experience required for a specific job, including duties and responsibilities.