Which of the Following Statements Regarding Net Margin Is Incorrect

question 61

Multiple Choice

Which of the following statements regarding net margin is incorrect?

• A) Net margin refers to the average amount 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:

Random Variable

A quantity whose numerical values emerge from unpredictable phenomena.

Discrete Random Variable

A variable that takes on a finite or countably infinite number of values, each with a quantifiable probability.

Employees

Individuals who work for another person or organization in return for compensation.

Poisson Distribution

A statistical distribution describing the likelihood of a certain number of events taking place within a specific time or space interval, given that these events happen at a fixed average rate and are independent of the timing of the previous event.