Equal to the difference between sales and cost of sales as a percent of sales, gross margin per dollar of sales is seldom used as a means of summarizing a firm's ability to create value.

Question

Quizplus · Accepted Answer

Gross margin per dollar of sales is in fact a commonly used measure to summarize a firm's ability to create value, as it reflects the profitability of each dollar of sales. The statement in the question is therefore false.

Equal to the Difference Between Sales and Cost of Sales