Purpose
The purpose of margins is "to determine the value of incremental sales, and to guide pricing and promotion decision."
"Margin on sales represents a key factor behind many of the most fundamental business considerations, including budgets and forecasts. All managers should, and generally do, know their approximate business margins. Managers differ widely, however, in the assumptions they use in calculating margins and in the ways they analyze and communicate these important figures."
Read more about this topic: Gross Margin
Famous quotes containing the word purpose:
“The very purpose of existence is to reconcile the glowing opinion we have of ourselves with the appalling things that other people think about us.”
—Quentin Crisp (b. 1908)
“In using the strong hand, as now compelled to do, the government has a difficult duty to perform. At the very best, it will by turns do both too little and too much. It can properly have no motive of revenge, no purpose to punish merely for punishment’s sake. While we must, by all available means, prevent the overthrow of the government, we should avoid planting and cultivating too many thorns in the bosom of society.”
—Abraham Lincoln (1809–1865)
“Whoever considers morality the main objective of human existence, seems to me like a person who defines the purpose of a clock as not going wrong. The first objective for a clock, is, however, that it does run; not going wrong is an additional regulative function. If not a watch’s greatest accomplishment were not going wrong, unwound watches might be the best.”
—Franz Grillparzer (1791–1872)