Accounting Just because the gross profit margin is positive does not mean that a company will be profitable. So what other factors will impact profitability besides a positive gross profit margin? Do you think that when a company has a good gross profit margin that they are guarantee to earn a net income? Explain

Accounting Just because the gross profit margin is positive does not mean that a company will be profitable. So what other factors will impact profitability besides a positive gross profit margin? Do you think that when a company has a good gross profit margin that they are guarantee to earn a net income? Explain

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 13DQ

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Similar questions

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Compare and contrast the net income margins of both Company A and B. Do you think the company with the lower net income margin is in absolute financial distress? Explain.
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Profitability earning is a real barometer to measure the Select one: O a. Sales of business firm O b. Effectiveness of business firm O c. None of the options O d. Cost of business firm O e. Efficiency of business firm
What does this say about the company's profitability?
Profitability is a measure of an organization's profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a lessefficient organization, which must spend more to generate the same profit. Profit is the amount your business gains.It is a number that remains when you subtract expenses from your revenue. Profitability measures your business's profits and helps you determine your success or failure. In other words profitability is its ability to make a profit. Changes were made in operating methods in an effort to increase profitability.In these days Banks have new competitors from many industries; they all have one thing in common, the effort to earn more profit. Innovation is very important parts of today´s business as a banker discuss your views and what can be done to make the bank financially sound, discuss the steps you can take to increase the profitability of the bank.
Profitability is a measure of an organization's profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a lessefficient organization, which must spend more to generate the same profit. Profit is the amount your business gains. It is a number that remains when you subtract expenses from your revenue. Profitability measures your business's profits and helps you determine your success or failure. In other words profitability is its ability to make a profit. Changes were made in operating methods in an effort to increase profitability. In these days Banks have new competitors from many industries; they all have one thing in common, the effort to earn more profit. Innovation is very important parts of today´s business as a banker discuss your views and what can be done to make the bank financially sound, discuss the steps you can take to increase the profitability of the bank.
Can you identify a possible explanation for the company’s declining profits? If so, what is it?
Why do you believe businesses rely heavily on revenue recognition to inflate profits?