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:
“Language, the machine of the poet, is best fitted for his purpose in its rudest state. Nations, like individuals, first perceive, and then abstract. They advance from particular images to general terms. Hence the vocabulary of an enlightened society is philosophical, that of a half-civilised people is poetical.”
—Thomas Babington Macaulay (1800–1859)
“During the cattle drives, Texas cowboy music came into national significance. Its practical purpose is well known—it was used primarily to keep the herds quiet at night, for often a ballad sung loudly and continuously enough might prevent a stampede. However, the cowboy also sang because he liked to sing.... In this music of the range and trail is “the grayness of the prairies, the mournful minor note of a Texas norther, and a rhythm that fits the gait of the cowboy’s pony.””
—Administration in the State of Texa, U.S. public relief program (1935-1943)
“the Omnibus
Had no real purpose till it got to us.
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—Robert Frost (1874–1963)