When benchmarking financial statements of two key competitors, the gross margin of Company A is expressed as a percentage of:
A) the total gross margins of Companies A and B.
B) Company B's gross margin.
C) a common standard for both Company A and Company B.
D) Company A's sales.

Question

Quizplus · Accepted Answer

Gross margin is calculated as (Sales - Cost of Goods Sold) / Sales, so it is expressed as a percentage of Company A's sales.

When Benchmarking Financial Statements of Two Key Competitors, the Gross