Gross profit margin measures the:
A) efficiency of management in turning over the company's goods at a profit.
B) efficiency of the use of assets in generating assets.
C) effectiveness of investments in inventories.
D) effectiveness of the collection of accounts receivables.

Question

Quizplus · Accepted Answer

Gross profit margin measures how efficiently a company is selling its goods at a profit, which relates to the effectiveness of management in turning over the company's goods. B, C, and D are not directly related to gross profit margin.

Gross Profit Margin Measures The