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Pregunta 3 Which level of profit margin considers all the costs of doing business such as salaries, rent,and utilities, and the direct cost of bringing a product or service to market? Pre-tax profit margin Gross profit margin Operating profit margin Net profit margin

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Pregunta 3
Which level of profit margin considers all the costs of doing business such as salaries, rent,and utilities, and
the direct cost of bringing a product or service to market?
Pre-tax profit margin
Gross profit margin
Operating profit margin
Net profit margin

Pregunta 3 Which level of profit margin considers all the costs of doing business such as salaries, rent,and utilities, and the direct cost of bringing a product or service to market? Pre-tax profit margin Gross profit margin Operating profit margin Net profit margin

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AnnabelleElite · Tutor for 8 years

Answer

<p> D</p>

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<p> The question tests your understanding of different profit margin metrics. Profit margin is a ratio that a company uses to gauge its profitability. The following are a few key types of profit margins:<br /><br />1. Gross profit margin is a company's total revenue minus its cost of goods sold (COGS), divided by total revenue. It only considers the direct costs associated with production.<br /><br />2. Pre-tax profit margin is a profit margin scenario before tax expenses are deducted. It considers taxes, and reflects a couple's underlying profitability better it's once gross income has been adjusted for certain items.<br /><br />3. Operating profit margin is a profitability ratio that measures what percentage of total revenues is made up by operating income. It considers not only the cost of production, but also other costs associate with running a business, such as administrative and marketing costs.<br /><br />4. Net profit margin is the percentage of revenue left after all expenses have been deducted from sales. It considers all the costs related to running a business, including the direct costs of producing offerings and the indirect costs, such as salaries, rents, utilities, and so on.<br /><br />So, the answer would be net profit margin. </p>
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