The measure (ratio) that reflects the performance of a manager regarding sales and cost of goods sold, but not other operating costs and income taxes, is called the:
A) gross margin ratio.
B) profit margin ratio.
C) operating margin ratio.
D) contribution margin ratio.

Question

Quizplus · Accepted Answer

The gross margin ratio measures the performance of a manager by comparing sales to the cost of goods sold, excluding other operating costs and income taxes.

The Measure (Ratio) That Reflects the Performance of a Manager