Direct product profitability corresponds to a product's gross profit.

Question

Quizplus · Accepted Answer

Direct product profitability (DPP) measures the specific profit associated with a product, taking into account not just the gross profit but also the direct costs involved in selling that product, such as handling, shelf space, and distribution. Gross profit, on the other hand, is calculated simply as sales revenue minus the cost of goods sold (COGS) and does not account for these additional direct costs.

Direct Product Profitability Corresponds to a Product's Gross Profit