The Net Profit Margin Ratio

question 116

Multiple Choice

The net profit margin ratio:

• A) how much profit from each dollar of revenue.
• B) means improved performance if it decreases.
• C) means weaker performance if it increases.
• D) measures the percentage of assets financed by debt.

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Definitions:

Organizational Process

The structured set of activities and tasks that an organization uses to coordinate work operations and achieve its objectives.

Knowledge Sharing

The process by which individuals exchange information, skills, or expertise in a way that benefits the organization or community.

Measures Performance

The process of evaluating the efficiency and effectiveness of actions or operations, typically through quantitative metrics.

Flexible Budget

A budget that is stated as a function of some volume measure, such as units produced. Flexible budgets adjust for changes in volume.