Which of the Following Would Increase the Net Profit Margin

question 103

Multiple Choice

Which of the following would increase the net profit margin in the current year?

• A)Postpone routine maintenance work that was to be done this year.
• B)Increase the amount of research and development in the last month of the year.
• C)Postpone the purchase of supplies to the first month of the following year.
• D)Postpone dividends to stockholders.

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Definitions:

Total Compensation

The complete package of salary, bonuses, benefits, and other forms of pay provided by an employer to an employee.

Paid Executives

High-level officers or managers within a company who are compensated with a substantial salary, bonuses, and often, benefits and stock options.

Labour Costs

Expenses related to compensating employees for their work, including wages, salaries, and benefits.

Profit Margins

A measure of profitability calculated as net income divided by revenue, indicating the percentage of each dollar of revenue that results in profit.