A company can improve its profit margin by
A)decreasing its gross profit margin.
B)controlling its operating and other expenses
C)experiencing an increase in the income tax rate.
D)earning other expenses.

Question

Quizplus · Accepted Answer

Controlling operating and other expenses directly impacts a company's bottom line by reducing costs, which in turn can improve profit margins. This is because the profit margin is calculated by subtracting total expenses from total revenue; thus, lower expenses increase the margin.

A Company Can Improve Its Profit Margin by