____ is the ratio of revenues to profits.
A)Profit
B)Profit margin
C)Cost structure
D)Cost margin

Question

Quizplus · Accepted Answer

Profit margin is the ratio of revenues to profits. This financial ratio is used to determine the profitability of a business by measuring the amount of profit earned for every dollar of revenue generated. A high profit margin indicates that a company is generating profits efficiently, while a low profit margin suggests that a company may be struggling to control costs or may be facing competitive pressures that are reducing its profitability. Therefore, option B is the correct answer.

____ Is the Ratio of Revenues to Profits