Competitiveness can be best measured by ___________?
Correct answer: A. Gross margin
- A. Gross margin
- B. income margin
- C. sales margin
- D. cost marginHire An Accountant
Explanation
Gross margin compares sales revenue with the cost of goods sold, so it helps indicate how competitively a business can price its products while covering product costs. Income and cost margins measure different performance aspects.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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More Financial Statements questions
The gross margin is added to the cost of sold goods to calculate: ____________?
If the gross margin is $2000 and the revenue is $5000, then the cost of goods sold would be _________?
The gross margin is $7000 and the revenues are $16000, then the cost of goods sold would be __________?
If the cost of goods sold is $8000, the gross margin is $5000 then the revenue will be ___________?
The gross margin is divided by revenues to calculate the __________?
The gross margin is added into cost of sold goods to calculate the __________?