Which of the Following Statements Does Not Describe Gross Margin

question 70

Multiple Choice

Which of the following statements does not describe gross margin?

• A) It can be expressed as a percentage of net sales.
• B) It is the profit on the goods sold excluding the operating expenses.
• C) It is also referred to as gross profit.
• D) It is a performance measurement.
• E) It is a measure of return on assets.

Understand the importance of fair and rational cost allocations.

Differentiate between various types of business centers such as cost, profit, and investment centers.

Recognize that a variety of factors, both financial and non-financial, can be considered in evaluating a department's performance.

Identify and allocate joint costs using different bases.

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