Which of the following correctly describes the gross profit percentage?
A)The gross profit percentage is one of the most carefully watched measures of profitability.
B)Retailing companies strive to increase the gross profit percentage.
C)For most companies,the gross profit percentage changes little from year to year.
D)All of the above are true.

Question

Quizplus · Accepted Answer

A) The gross profit percentage is indeed one of the most carefully watched measures of profitability.
B) Retailing companies strive to increase the gross profit percentage because it indicates their ability to generate profit after accounting for the cost of goods sold.
C) For most companies, the gross profit percentage can fluctuate depending on various factors such as pricing strategies, market conditions, and production costs. However, it is generally expected to remain relatively stable.

Which of the Following Correctly Describes the Gross Profit Percentage