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:
“A major misunderstanding of child rearing has been the idea that meeting a child’s needs is an end in itself, for the purpose of the child’s mental health. Mothers have not understood that this is but one step in social development, the goal of which is to help a child begin to consider others. As a result, they often have not considered their children but have instead allowed their children’s reality to take precedence, out of a fear of damaging them emotionally.”
—Elaine Heffner (20th century)
“In criticism I will be bold, and as sternly, absolutely just with friend and foe. From this purpose nothing shall turn me.”
—Edgar Allan Poe (1809–1845)
“The purpose of a work of fiction is to appeal to the lingering after-effects in the reader’s mind as differing from, say, the purpose of oratory or philosophy which respectively leave people in a fighting or thoughtful mood.”
—F. Scott Fitzgerald (1896–1940)