The gross profit percentage:

Question

Quizplus · Accepted Answer

The gross profit percentage, also known as the gross margin percentage, measures the amount of profit made on each dollar of sales after deducting the cost of goods sold. It is expressed as a percentage and represents the company's ability to cover its operating expenses and generate a profit. Option A is incorrect because markup is stated as a percentage of the selling price, not the cost. Option C is incorrect because the gross profit percentage is not affected by the company's financial difficulties or performance. Option D is incorrect because, in general, the gross profit percentage is relatively stable from year to year, though it may vary among industries.

The Gross Profit Percentage