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Questions and Answers
What is the simplest profitability metric according to the text?
What is the simplest profitability metric according to the text?
- Net profit margin
- Operating profit margin
- Net profit
- Gross profit margin (correct)
What expenses are excluded from the cost of goods sold (COGS)?
What expenses are excluded from the cost of goods sold (COGS)?
- Debt and taxes
- Raw materials and labor wages
- Operating and overhead costs (correct)
- Equipment purchases
Which type of profit margin reflects the percentage of each revenue dollar retained as profit after paying for the cost of production?
Which type of profit margin reflects the percentage of each revenue dollar retained as profit after paying for the cost of production?
- Operating profit margin
- Total revenue margin
- Net profit margin
- Gross profit margin (correct)
What is the most comprehensive level of profit calculated on an income statement?
What is the most comprehensive level of profit calculated on an income statement?
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What does COGS include according to the text?
What does COGS include according to the text?
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