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 purpose of education is to keep a culture from being drowned in senseless repetitions, each of which claims to offer a new insight.”
—Harold Rosenberg (1906–1978)
“If God bestowed immortality on every man then when he made him, and he made many to whom he never purposed to give his saving grace, what did his Lordship think that God gave any man immortality with purpose only to make him capable of immortal torments? It is a hard saying, and I think cannot piously be believed. I am sure it can never be proved by the canonical Scripture.”
—Thomas Hobbes (1579–1688)
“No further evidence is needed to show that “mental illness” is not the name of a biological condition whose nature awaits to be elucidated, but is the name of a concept whose purpose is to obscure the obvious.”
—Thomas Szasz (b. 1920)