Which of the following is true of the gross profit percentage?
A) Gross profit percentage is the same for companies in all industries.
B) Gross profit percentage is used to measure the solvency of a company.
C) The gross profit percentage is one of the most carefully watched measures of profitability.
D) A service company must show its gross profit percentage in its Income Statement.
C
You might also like to view...
Which of the following is the BEST example of management thinking during the "production era"?
A. "If we can produce it, customers will buy it." B. "The lower we price a product, the more we can sell." C. "We need to increase our sales effort-to sell what we can produce." D. "The more we advertise a product, the more we can sell." E. "We need to be selective and produce what customers want."
One way to anticipate a competitor's likely future strategies is to use a mathematical approach called game theory
Indicate whether the statement is true or false
A two-tailed test is more conservative than the corresponding one-tailed test
Indicate whether the statement is true or false
Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has
a. a legal duty beyond those duties mandated by ethics. b. an ethical duty beyond those duties mandated by law. c. any duty beyond those mandated by both ethics and the law. d. any duty when it is uncertain whether a legal duty exists.