Which of the following statements regarding net margin is not true?
A)Net margin refers to the percentage of each sales dollar remaining after all expenses are subtracted.
B)Net margin may be calculated in several ways.
C)The amount of net margin is affected by a company's choices of accounting principles.
D)The smaller the net margin the better.

Question

Quizplus · Accepted Answer

Net margin,sometimes called operating margin,profit margin,or the return on sales ratio,describes the percentage of each sales dollar remaining after subtracting other expenses as well as cost of goods sold.Obviously,the larger the percentage,the better.

Which of the Following Statements Regarding Net Margin Is Not