Which of the following correctly describes the gross profit percentage?
A) For most companies, the gross profit percentage changes little from year to year.
B) Merchandising companies strive to increase the gross profit percentage.
C) The gross profit percentage is one of the most carefully watched measures of profitability.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All the statements are true regarding the gross profit percentage. It tends to be stable over time for most companies, is a key metric that merchandising companies aim to improve, and is closely monitored as an important indicator of profitability.

Which of the Following Correctly Describes the Gross Profit Percentage