The gross profit amount is generally considered to be more informative than the gross profit margin.

Question

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The gross profit margin is often considered more informative because it shows the percentage of revenue that exceeds the cost of goods sold, providing a relative measure of profitability that can be compared across companies or periods, unlike the gross profit amount which is an absolute figure and doesn't account for the size of the company or its sales.

The Gross Profit Amount Is Generally Considered to Be More