Why gross margin analysis is undertaken
Gross Margin analysis is undertaken to so that a business manager can analyse results already achieved and plan for the future. Without gross margins analysis the business manager is short of a major part of their information system.
A gross margin can be defined as the gross income from an enterprise less the variable costs incurred in achieving it.
Gross margins are predominantly used to compare enterprises on the basis of which is making the best profit. A gross margin enables producers to evaluate their existing enterprise performance, and for…
