The Measure (Ratio) That Reflects the Performance of a Manager

question 94

Multiple Choice

The measure (ratio) that reflects the performance of a manager regarding sales and cost of goods sold, but not other operating costs and income taxes, is called the:

• A) gross margin ratio.
• B) profit margin ratio.
• C) operating margin ratio.
• D) contribution margin ratio.

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Definitions:

Squares Total

The sum of squared differences between each observation and the overall mean of the data set. It is a measure of total variation within a data set.

Sum

The total obtained by adding together a set of numbers or quantities.

ANOVA

Refers to Analysis of Variance, a statistical technique used to compare the means of three or more samples to find if at least one of them differs significantly.

T Test

A statistical test used to compare the means of two groups to determine if there is a significant difference between them.