If net profit measures the profitability of an entire firm, then what measures the profitability of merchandising activities?
A) Shrinkage
B) Owner's equity
C) Asset turnover
D) Gross margin
E) Accounts receivable

Question

Quizplus · Accepted Answer

Gross margin measures the profitability of merchandising activities by showing the difference between sales revenue and the cost of goods sold.

If Net Profit Measures the Profitability of an Entire Firm