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 punishment is to improve those who do the punishing—that is the final recourse of those who support punishment.”
—Friedrich Nietzsche (1844–1900)
“We need not only a purpose in life to give meaning to our existence but also something to give meaning to our suffering. We need as much something to suffer for as something to live for.”
—Eric Hoffer (1902–1983)
“With the breakdown of the traditional institutions which convey values, more of the burdens and responsibility for transmitting values fall upon parental shoulders, and it is getting harder all the time both to embody the virtues we hope to teach our children and to find for ourselves the ideals and values that will give our own lives purpose and direction.”
—Neil Kurshan (20th century)