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:
“There are a sort of men whose visages
Do cream and mantle like a standing pond,
And do a willful stillness entertain,
With purpose to be dressed in an opinion
Of wisdom, gravity, profound conceit,
As who should say, “I am Sir Oracle,
And when I ope my lips let no dog bark!””
—William Shakespeare (1564–1616)
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—Abraham Lincoln (1809–1865)
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the world can say against it; and therefore never flout at me for what I have said against it; for man is a giddy thing, and this is my conclusion.”
—William Shakespeare (1564–1616)