The gross profit ratio:
A) Measures the relationship between net sales and cost of goods sold.
B) Is a profitability measure.
C) Measures the amount of gross profit in each dollar of sales.
D) Measures the relationship between net sales and cost of goods sold and is a profitability measure.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

The gross profit ratio measures the relationship between net sales and cost of goods sold, is a profitability measure, and indicates the amount of gross profit in each dollar of sales.

The Gross Profit Ratio