One of the advantages to using gross profit for analysis is that the resulting values should be similar across industries and therefore,provide a means of comparison

Question

Quizplus · Accepted Answer

Gross profit margins can vary significantly across different industries due to factors such as the nature of the goods or services provided, production costs, and pricing strategies, making it difficult to use gross profit as a basis for comparison across industries.

One of the Advantages to Using Gross Profit for Analysis