What is the use of Gross Margin?
1 Answer(s)
Binny
Gross Margin is the amount of money the company has left over to pay for oprations (salary, marketing, rent etc) after spending money on the cost of making the product (COGS). High GM companies like IT companies can afford to pay high salaries, have fancy offices etc. Low GM companies like retail will pay lower salaries, have basic offices etc.
Jan 12 2013 09:39 AM