azielkapiza azielkapiza

21-07-2022
Business

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which of the following is a tertiary ratio that drives profitability?

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EBIT / Sales
Net Profit / Sales
EBIT / Net Profit
SG&A Expense / Sales

Respuesta :

Tundexi Tundexi

22-07-2022

The SG&A Expense/Sales is the tertiary ratio that drives profitability.

What is SG&A Expense/Sales?

This refers to the everyday operating expenses of running a business that are not included in the production of goods or delivery of services.

As the SG&A includes rent, salaries, advertising, marketing expenses etc., it is the tertiary ratio that drives profitability.

Therefore, E is correct.

Read more about SG&A

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