For most firms,the gross profit percentage changes significantly from year to year.

Question

Quizplus · Accepted Answer

The gross profit percentage is usually stable over time, unless there are significant changes in the cost of goods sold or pricing strategies. It is a key performance indicator that reflects a company's ability to generate profits from its sales after deducting the direct costs associated with producing its goods or services. Therefore, a stable gross profit percentage is generally preferred as it suggests consistency in the company's profitability and operational efficiency.

For Most Firms,the Gross Profit Percentage Changes Significantly from Year