CORe Exam Dumps | Which of the following financial indices may be used to infer the typical mark-up percentages used by

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Question 19/72

Which of the following financial indices may be used to infer the typical mark-up percentages used by a firm?

A. Current ratio

B. Quick ratio

C. Times interest earned

D. Gross profit margin

Correct Answer: D

The financial index that may be used to infer the typical mark-up percentages used by a firm is D. Gross profit margin. The gross profit margin is a financial metric that reflects the percentage of revenue that exceeds the cost of goods sold, which is essentially the mark-up over the cost1. It is used to assess a firm's financial health by indicating how much profit the company makes for each dollar of sales after paying for the production of the goods.

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