What measures the profitability of products that are sold?
A) Accounts receivable
B) Asset turnover
C) Gross margin
D) Owner's equity
E) Shrinkage

Question

Quizplus · Accepted Answer

Gross margin is a measurement of the profitability of the goods sold, or profit on the merchandise. Gross margin, also called gross profit, is the net sales minus the cost of the goods sold. It is an important measure in retailing because it indicates how much profit the retailer is making on merchandise sold, without considering the expenses associated with operating the store and corporate overhead expenses.

What Measures the Profitability of Products That Are Sold