Question

What does margin measure? Describe this in your own words. Writing a formula is not a sufficient answer. Discuss one specific way a business could increase its margin.

question 2)

What does turnover measure? As a manager, what is one way you could improve turnover for your division?

Answer 1

1.) Margin measures the money you made on the products/services you sold, after calculating your revenues minus cost of goods sold only.

• Margin provides a way to measure the performance of operations of business in percentage terms
• It is mainly shown in relative context
• Some of the types of margin are Gross Profit margin, Operating margin etc

The way a business could increase margin is to streamline the operations and reduce operating expenses.

2.) Turnover measures the income that a firm generates through trading its goods & services.

• Turnover is an accounting concept that calculates how quickly a business conducts its operations.
• Greater the turnover greater the product life cycle

To improve the turnover of the division try to produce products with updated design and technology and also time for producing the product should be minimal

answered by: anonymous