Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues?
A) gross profit
B) net margin
C) operating margin
D) working capital

Question

Quizplus · Accepted Answer

Net margin measures the percentage of sales revenue that a firm can retain after deducting all expenses, including cost of goods sold, operating expenses, and interest and taxes. Gross profit measures the difference between sales revenue and cost of goods sold, while operating margin measures the percentage of sales revenue that a firm can retain after deducting only operating expenses. Working capital measures a firm's ability to meet its short-term financial obligations.

Which of the Following Measures the Percentage of Sales Revenue