Which of the following statements is true with respect to the gross profit percentage?

Question

Quizplus · Accepted Answer

The gross profit percentage is useful to retailers in choosing a pricing strategy and in judging its results. This is because the gross profit percentage represents the portion of sales revenue that is left over after accounting for the costs of goods sold. As such, it can provide insight into whether a particular pricing strategy is generating sufficient gross profit to cover expenses and yield a desirable net income. Additionally, retailers may compare their gross profit percentages to industry averages in order to assess their competitiveness and identify areas for improvement.

Which of the Following Statements Is True with Respect to the Gross