Which of the Following Statements Regarding Net Margin Is Not

question 79

Multiple Choice

Which of the following statements regarding net margin is not true?

• A)Net margin refers to the percentage of each sales dollar remaining after all expenses are subtracted.
• B)Net margin may be calculated in several ways.
• C)The amount of net margin is affected by a company's choices of accounting principles.
• D)The smaller the net margin the better.

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Definitions:

Everyday Even Lower Pricing

A pricing strategy aimed at consistently offering products at lower prices than usual, meant to attract and retain customers.

Market War

Intense competitive actions among companies in the same industry to gain market share, often involving aggressive pricing, advertising, and product launches.

Product-line Pricing

A marketing strategy that involves setting different price points for various items in a product line based on their features or quality levels.

Bundle Pricing

A pricing strategy where multiple products or services are packaged together and sold at a single price, often lower than the total cost of buying them separately.