Net income divided by net sales is known as
A) profit margin.
B) cost of sales ratio.
C) return on sales.
D) both profit margin and cost of sales ratio.
E) both profit margin and return on sales.

Question

Quizplus · Accepted Answer

Net income divided by net sales is known as both profit margin and return on sales. These terms are used interchangeably to describe the percentage of profit generated from sales.

Net Income Divided by Net Sales Is Known as