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Which of the Following Statements About Net Profit Margin Is

Question 216

Multiple Choice

Which of the following statements about net profit margin is not correct?


A) If a company's net profit margin increases from 15% to 20% this would be considered an improvement in profitability.
B) A company with a net profit margin of 10% is using 90% of each dollar of revenue to cover costs and expenses.
C) Net profit margin indicates how much net income is earned for every dollar of revenue.
D) A company with a net profit margin of 10% may be evaluated differently depending upon which industry it is in.

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