Profit stated as a percentage of sales is one means of evaluating a company's ability to control its expenses.

Question

Quizplus · Accepted Answer

Profit as a percentage of sales, also known as profit margin, measures how much profit a company earns for each dollar of sales. By comparing this metric over time, a company can evaluate their ability to effectively manage expenses and increase profitability. Therefore, the statement is true.

Profit Stated as a Percentage of Sales Is One Means