What is the reason that makes net profit margin increases and decreases?

Q: Which one of the following statement is true about profit maximization? a It foc US or Ountina

A: 1. Profit maximization is the concept that focuses on maximising the profits. This concept ignores…

Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: Explain profit margin

A: Profit margin is one of the benefits proportions that's generally utilized to assess the level to…

Q: How would you define profit planning? What is the importance of profit planning?

A: a) Profit planning is a progression of steps being taken to arrive at an ideal level of profit. Such…

Q: What is Profitability?

A: Profits means the excess of revenue earned during a period over the expenditure incurred to generate…

Q: on. What is the maximum profit possible?

A: In the given question, we have to compute maximum possible profit out of the given availability of…

Q: What is the meaning of economic value added (EVA)? What does it measure? Why is it important?

A: Economic value added ("EVA") measures a company's financial performance based on the excess wealth…

Q: Why is NOPAT a better performance measure than net income?

A: NOPAT stands for Net Operating Profit After Tax. It refers to the organization's earnings before tax…

Q: Explain the concepts of revenue, costs, break-even and profit with examples?

A: These concepts are related to variable costing in which we use variable cost to compute our…

Q: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: Which of the following would be considered as a limiting factor to maximize the profit? O a. Book…

A: Limiting factors can be defined as the constraints in availability of production resources in order…

Q: why buying on margin is less riskier than short selling?

A: Trading on margin is a process of borrowing funds from a brokerage firm in order to execute trade…

Q: Which of the following is an opportunity cost? marginal cost cost of sales O lost sales cost of…

A: Introduction: Opportunity cost: Cost for the opportunity lost called Opportunity cost.

Q: What are the benefits of Profitability Analysis?

A: Profitability analysis is a tool used by the firm to analyze cost and revenue to know whether the…

Q: What variable affecting gross profit should the manager focus his attention? Why?

A: Gross Profit is the profit arrived at by deducting cost of goods sold from the turnover or the…

Q: What is the incremental profit?

A: Incremental profit is the additional profit gained due to a managerial decision taken. In this case,…

Q: What is the reason that makes gross profit margin increases and decreases?

A: The gross profit margin is calculated by deducting the cost of goods sold from the sales revenue and…

Q: What is the gross profit declined due to increase in cost in the amount?

A: Gross profit refers to the profit calculated after considering the costs associated with the…

Q: What would be the expected change in profit?

A: "Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…

Q: How to incease profitability if PE Ratio, EPS Ratio, and ROE cannot be calculated because of its…

A: Accounting refers to the process of recording, summarizing, interpretation and communicating the…

Q: What does it mean when ROI has decreased even though net income hasincreased?

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…

Q: What is target profit?

A: Target costing:   Target costing is a business procedure that targets the cost at the earliest…

Q: theories of profit

A: The profit is the key incentive for a firm to operative business . According to each theory of the…

Q: Explain the difference between return of investment versus return on investment.

A: The ratio analysis helps to analyze the financial statements of the business.

Q: Sales return is a?

A: Suppose a manufacturing entity sales 10,000 units($50,000) of erasers to wholesalers, then the buyer…

Q: Is there a point in a cost-volume-profit analysis when the company is expected to profit?

A: Is there a point in a cost-volume-profit analysis when the company is expected to profit? Answer:…

Q: How is cost-volume-profit analysis different from profit planning?

A: Cost Volume Profit Analysis - This is an Analysis which provides the details How it will Effect the…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: What concept relates to the proportionate savings in costs gained when levels of production are…

A: Lets understand the meaning of all the terms given in the question. Accounting profit is a terms…

Q: Is it true that All else being equal, an increase in profit margin raise ROE?

A: According to DUPONT Analysis, ROE is the function of three ratios. ROE =profit margin × asset…

Q: 2. What is cost-volume-profit analysis and what are the important assumptions of this analysis?

A: Profit analysis entails dissecting a company's reported profit figure to determine the true extent…

Q: How does targeted profit enter into the break-even units equation?

A: Every organisation desires to attain certain target profit.  Therefore the organisation makes an…

Q: What is Profit and Loss (PNL)?

A: A business organisation is established with an objective to make money and increase the worth of the…

Q: profit margin

A: Profit margin = Net income * 100/Revenue

Q: What is meant by the terms margin and turnover in ROI calculations?

A: ROI( Return on investment) is a performance measure used to measure the efficiency of an…

Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…