You Are Using a Leading Competitor,Company B,for Benchmarking Your Company,Company

question 111

Multiple Choice

You are using a leading competitor,Company B,for benchmarking your company,Company A.When benchmarking,the gross margin of Company A is expressed as a percentage of:

• A)the net sales of Companies A and B.
• B)Company B's net sales.
• C)Company A's net income.
• D)Company A's net sales.

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Definitions:

Account Payable

A liability represented by an obligation to pay off a short-term debt to its creditors or suppliers.

Notes Payable

An accounting term for amounts owed by a business that are evidenced by promissory notes.

Borrower

An individual or entity that receives something with the agreement to return it or its equivalent to the lender at a later date.

Sales Taxes

Taxes levied by government on the sale of goods and services, typically calculated as a percentage of the sale price.