Multiple Choice
Which of the following is a measure that summarizes the overall past performance of an investment?
4. Merchandising Operations
Comprehensive Income
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A report which focuses on providing gross profit margin per customer is referred to as a:
A
customer profitability report
B
cash flow statement
C
statement of comprehensive income
D
balance sheet
Verified step by step guidance1
Understand the concept of gross profit margin: Gross profit margin is a financial metric that shows the percentage of revenue remaining after deducting the cost of goods sold (COGS). It is used to assess profitability.
Identify the purpose of the report: A report focusing on gross profit margin per customer aims to analyze the profitability of individual customers by comparing the revenue generated from each customer to the costs associated with serving them.
Review the options provided: The options include 'customer profitability report,' 'cash flow statement,' 'statement of comprehensive income,' and 'balance sheet.'
Match the purpose of the report to the correct option: A 'customer profitability report' is specifically designed to provide insights into the profitability of individual customers, including gross profit margin per customer.
Conclude that the correct answer is 'customer profitability report,' as it aligns with the focus on gross profit margin per customer.
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