Select the Incorrect Statement Regarding Net Margin

question 136

Multiple Choice

Select the incorrect statement regarding net margin.

• 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.

---

Definitions:

Cumulative Profit

The total profit accumulated over a period of time.

Probability Value

A numerical measure between 0 and 1, inclusive, that represents the likelihood of a specific event happening.

Forecast Chart

A visual representation of past and predicted future data trends, often used for analysis and planning in various fields.

Forecast Cells

Segments or units within a forecasting model representing specific future outcomes based on variables and conditions.