Overall profitability ratios are based on

Select the correct answer of the Assertion (A) and Reason (R).
Assertion (A) Companies should measure the profitability of their products,. territories, customer groups, segments, trade channels and order sizes.
Reason (R) Measure of profitability helps companies determine whether to expand, reduce or eliminate any product or marketing activities to ensure profitability control.

A

Both (A) and (R) are correct and (R) is the right explanation of (A)

B

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

(R) is correct, but (A) is incorrect

Assertion (A) A firm's relative position within its industry determines whether the firm's overall profitability is above or below the industry average.
Reason (R) The fundamental basis of average profitability in the long run is sustainable competitive advantage.

A

(A) and (R) both are correct and (R) is the right explanation of A

B

(A) and (R) both are correct, but (R) is not the right explanation of (A)

C

(A) is correct, but (R) is incorrect

D

(R) is correct, but (A) is incorrect

Which one of the following is not an example of profitability ratios?

A

OPERATING RATIO

B

ROI

C

EPS

D

INTEREST COVERAGE RATIO

Which one of the following is not a part of the Profitability Ratios:

A

Operating Ratio

B

Rate of Return on Capital Employed

C

Inventory Turnover Ratio

D

Gross margin/Sales Ratio

General profitability ratios are on the basis of

A

Investments

B

Sales

C

Both A and B

D

None of the above

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): Gross profit ratio is calculated on the basis of net sales.
Reason (R): Gross profit ratio measure overall profitability of a concern.
Choose the correct answer:

A

Both (A) and (R) are true and (R) is correct explanation of (A)

B

Both (A) and (R) are true but (R) is not be correct explanation of (A)

C

(A) is true but (R) is false

D

(A) is false but (R) is true

Which is the best measurement by the centre's for the contribution of a profit centre to the overall profitability of the business in the long-run?

A

Taxable income

B

Contribution margin

C

Performance margin

D

Responsibility margin

Anil marks his goods 40% above the cost price. He sells 50% of goods at the marked price and the remaining at a 10% discount. Which of the following is correct? I. His overall percentage gain is 70% II. 40% < overall percentage gain < 50% III. Overall % gain is a multiple of 11

A

Only I

B

Only II

C

Only III

D

II and III

A Jar contains white, red and green marbles in the ratios 2: 3: 4. Five more green balls are added to the Jar and the ratios become 2: 3: 5. How many white balls are there in the Jar?

A

4

B

6

C

8

D

10

Find which ratios form a proportion. Also, write the middle terms where the ratios form a proportion.

A

7 : 91 ∷ 14 : 196, middle term is 91 and 14

B

17 : 136 ∷ 21 : 168, middle term is 136 and 21

C

8 : 96 ∷ 5 : 65, middle term is 96 and 5

D

11 : 131 ∷ 16 : 176, middle term is 131 and 176

Overall profitability ratios are based on

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