Which of the Following Is Not an Example of a Profitability

question 3

Multiple Choice

Which of the following is not an example of a profitability ratio?

• A) current ratio
• B) gross profit margin
• C) return on assets
• D) profit margin

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Definitions:

MRP

Marginal Resource Product, which measures the additional revenue generated by employing one more unit of a resource.

MRC

Marginal Revenue Cost, often used interchangeably with Marginal Cost, refers to the increase in cost associated with producing one additional unit of output.

Profitable

The condition of earning more revenue than the costs incurred, leading to a financial gain or profit for the individual or organization.

Innovation

The first commercially successful introduction of a new product, use of a new method of production, or creation of a new form of business organization.