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6.4.2 Interpreting financial performance

Why are profit margins more useful than profit in pounds when comparing businesses?

A

A profit margin restates the revenue earned as a percentage of the number of products sold.

B

A profit margin shows the total profit earned in pounds without considering the revenue that produced it.

C

A profit margin restates revenue as a percentage of the total costs needed to produce it.

D

A profit margin restates profit as a percentage of the revenue that produced it.

6.4.2 Interpreting financial performance Flashcards

  1. GCSE
  2. /Business
  3. /6.4.2 Interpreting financial performance

20 flashcards on AQA GCSE Business 6.4.2 Interpreting financial performance: the key terms, formulae and case studies you need to recall for Paper 1 and Paper 2.