Which of the following statements about the profit margin is NOT true?
A) The profit margin indicates the percentage of sales revenue that ends up as profit.
B) The profit margin gives some indication of pricing strategy or competition intensity.
C) A supermarket would be expected to have a high profit margin.
D) The profit margin is a useful measure of performance.

Question

Quizplus · Accepted Answer

A supermarket would actually be expected to have a low profit margin due to high competition and low pricing strategies.

Which of the Following Statements About the Profit Margin Is