Given a high value, which of the following ratios best indicates that a retailing company is controlling the cost of the products it sells?
A) Gross profit margin
B) Operating profit margin
C) Return on assets
D) Return on equity

Question

Quizplus · Accepted Answer

Gross profit margin is the ratio of gross profit to net sales and indicates the percentage of sales that remain after taking into consideration the cost of goods sold. A higher gross profit margin indicates that the company is able to control the cost of the products it sells.

Given a High Value, Which of the Following Ratios Best