Measuring profitability on a relative rather than absolute basis is important because of all of the following EXCEPT:
A) It indicates how much profit a firm earns per dollar of revenue instead of overall profit.
B) It helps to compare firms of different sizes.
C) Relative profitability is a better reflection of competitive advantage than is absolute profitability.
D) A firm that has the greatest overall profit will sustain competitive advantage(s).

Question

Quizplus · Accepted Answer

All of the possible answers are reasons why measuring profitability on a relative basis is an important analytic tool.

Measuring Profitability on a Relative Rather Than Absolute Basis Is