The ____ ratio measures the relative profitability of a firm's sales after the cost of sales has been deducted.
A) gross profit margin
B) net profit margin
C) return on investment
D) return on stockholders' equity

Question

Quizplus · Accepted Answer

The gross profit margin ratio specifically measures the profitability of a company's sales after deducting the cost of goods sold (COGS), but before accounting for other expenses such as operating expenses, taxes, and interest. This makes it the correct choice for the description provided.

The ____ Ratio Measures the Relative Profitability of a Firm's