Accounting for IGCSE & O level - Final Statements (Section 6 - No. 35)
What does a high gross profit margin generally indicate?
The business is not managing its expenses efficiently.
The business has a high level of sales.
The business is selling goods at a higher markup.
The business has low cost of goods sold.
Forklaring
A high gross profit margin signifies that the company has low COGS compared to its revenue.