The ratio of income from operations to sales is termed the profit margin component of the rate of return on investment.

Question

Quizplus · Accepted Answer

The given statement is true. The profit margin component of the rate of return on investment is the ratio of income from operations to sales, which represents the profitability of a business. It tells how much profit a company is making on each dollar of sales it generates.

The Ratio of Income from Operations to Sales Is Termed