INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equal to
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Greater than
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Less than
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Identical to
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Detailed explanation-1: -A low gross profit margin means your ratio percentage is below industry norms and potentially down from your company’s prior periods. In essence, you aren’t generating strong sales prices relative to your cost of goods sold, or COGS, which are your costs to make or acquire products.
Detailed explanation-2: -The gross profit margin is calculated by subtracting direct expenses or cost of goods sold (COGS) from net sales (gross revenues minus returns, allowances and discounts). That number is divided by net revenues, then multiplied by 100% to calculate the gross profit margin ratio.
Detailed explanation-3: -Share. Gross margin is the amount of money a company has left after subtracting all direct costs of producing or purchasing the goods or services it sells. The higher the gross margin, the more money the company is able to contribute to its indirect costs and other expenses like interest.